VeChain started at June 2015 and sees itself as the leading blockchain application platform that is driven by enterprise adoption. Sunny Lu (CEO) and Jay Zhang (CFO) are the founders of VeChain. They have offices in China, Europe, the US, Singapore and Japan. The most important area in the business world that VeChain wants to excel in, is the supply-chain industry. They want to build a real use-case in this industry with the blockchain. They have already supported digital business transformation in industries like fashion, wine, automobile, food safety, carbon emission reduction and agriculture.
What VeChain aims for, is to have a blockchain with transparent information flow that tracks a certain product from its beginning all the way to the end (consumer). With a microchip (IOT chip) it would be able to see all the different chains a product will go through, before it ends at the consumer. Most important thing is to prevent manipulation or fraudulent behavior.
Lets say I order a pair of shoes of “Lacoste” on a website and it arrives at my home a week later. Who is to say I really received a genuine pair of Lacoste ? Did I not receive just some sort of cheap copy of the brand ? Right now it is hard to really verify this information. With VeChain it should become impossible. You would be able to see all the tracking steps from the beginning until the end on their public blockchain and this should prevent any kind of fraud.
VET is the cryptocurrency and gives you the right to use the blockchain. Each VET gives you a limited ability to interact with their blockchain. The more VET you own, the more you can use their blockchain. The way VeChain gives you this right is to “credit” your account with vouchers every day. These vouchers are called THOR. If for example you want to run a smart contract, you give THOR to a validator. The more complex your smart contract is, the more THOR you have to give. You can use THOR freely and can transfer them to anyone you want.
Toolchain is the name of the platform of VeChain’s Blockchain-As-A-Service (BaaS). Toolchain offers different services like :
- Product lifecycle management
- Supply chain process control
- Data deposit
- Data certification
- Process certification
All these services are available for any size of company and it helps enhancing brand perception and value. Furthermore the data will be immutable.
Tracking meat during the China International Import Export 2019
VeChain, DNV GL and ASI Group formed a partnership to create “Foodgates” which is the first cross-continental logistics and trades solution. They did this for the China International Import Export 2019 conference, which included more than 3000 companies from over 150 different countries. The French president Emmanuel Macron attended this conference with the Chinese president Xi Jinping. VeChain showed a public blockchain with verified and certified information of a full cycle of products being tracked. In this case it was beef products and both presidents actually ate the beef that got tracked by VeChain !
Here are some of the notable partnerships that VeChain has :
- PWC (PriceWaterhouseCooper)
- Kuehne & Nagel
- Groupe Renault
- Walmart China
VeChain weekly chart
Here I will show you a weekly chart of VeChain compared to the dollar on Binance with the indicator OBV (On Balance Volume) :
The green channel for price shows a downwards channel with lower highs and lower lows so far. The OBV on the other hand shows higher lows and higher highs ! This tells me that over the last years we see accumulation on this coin and that is good news ! The last big drop we had gave us a little bit of time outside of the channel to the downside, but it was very short-lived. VeChain has a long way to go before we might see some resolve to the upside outside of the channel, but OBV is not lying in my opinion and shows a bullish picture. Patience is once again key for this cryptocurrency. Volume has been showing a very decent rise as well towards the end of 2019 and 2020 so far. We can see w-patterns being created and that is normally bullish as well (M-patterns are bearish). W-patterns should normally create higher lows for it to work best. What I find interesting in this chart is that we were creating a W-pattern with a higher low right before the last big drop we had. It actually seems to me that if we did not have the major sell-off in Bitcoin and cryptocurrencies (a lot of people were covering their losses in other markets by selling BTC), we would have seen a break-out of the green channel to the upside for VeChain ! Right now we are going to have to wait a little while longer to recover.
When we look at prices, we have to look at Bitcoin as well, since a lot of cryptocurrencies follow BTC. I think that we will see another drop in the price of BTC after the halvening, so this will give a drop to VET as well. I really hope it can hold above the 0,003$ level. This would be around a 30% drop and would create a decent higher low. It would create in that case a new W-pattern which should propel us closer to the top of the green channel which is at 0,0066$ around the end of July. We will most likely see another rejection first, but soon after that we could finally see glory for VeChain !
My personal View
I like the project and believe that supply-chain can be a great business for the blockchain world. VeChain tries to establish itself as a major player in this market and looking at their partnerships I can see big potential for them. I only started investing in Vechain this year and I am still allocating some small sums every now and then. I got convinced at the end of 2019, because of the meeting between the Chinese president and the French president during the China International Import Export 2019. They are not a small player if they were chosen to track the beef meat for both presidents.
Looking at price VeChain is still in a downtrend and that is not an optimal situation. The indicator OBV shows an uptrend for years and in general volume precedes price, so we should see VeChain rising in price in the upcoming future. There is risk involved (as always) buying this cryptocurrency, but they are developing and creating great partnerships. If you really believe in the future of blockchain and cryptocurrencies, I believe VeChain will be one of the big players.
VeChain wants to revolutionize the supply chain business with their public blockchain and Toolchain platform. Tracking products from the very beginning until the end with an IOT-chip should prevent manipulation, modification or fraud. It will be very nice for example in the food industry to see exactly where your product comes from and what it goes through before it ends on your plate.
VeChain has some great partnerships and are developing actively which is good news.
The weekly chart shows a downtrend in price for the last couple of years, but the On Balance Volume is in an uptrend for the last years. This indicator normally tells you what smart money is doing and in this case it would be accumulation ! You have to be patient with this one and I believe it will become a big player in the future. I am investing small amounts every now and then and I will keep on doing this.
This is not financial advise and I am not a financial advisor. Do your own research and make your own decisions.