Kategorie: Crypto News

VeChain is a leading blockchain project that was built by a former senior executive at LVMH, the biggest luxury brand in the world. The original goal of VeChain was to help companies handle their supply chain challenges in a simple decentralized ecosystem. In this article, we will explain what VeChain is and why we believe it is a good investment.

What is VeChain?

VeChain is a blockchain platform that helps companies solve the biggest supply chain challenges around the world. As a result, it is solving one of the biggest challenges that many companies from around the world are facing due to the Covid-19 pandemic and the logistics challenges that emerged. 

VeChain was established by Sunny Lu and Jay Zhang. Lu was previously the Chief Technology Officer at LVMH China while Jay was a senior manager at PwC.

The network works by combining a number of technologies such as QR codes, near-field communication (NFC), and radio frequency identification. As a result, its users attach sensors at every stage of their supply chain, which are then linked to the blockchain. The blockchain and the smart contracts involved make it impossible for these records to be changed. 

Read more about our VeChain price prediction.

VeChain uses a software platform known as VeThor, which is built for mass adoption of the blockchain technology. It is a platform built using a technology known as Proof-of-Authority, which is its primary governance mechanism. Unlike proof-of-work and proof-of-stake, PoA demands that each node is authorized in order to access the network.

Today, VeChain is used by some of the leading companies in China. Some of the most notable companies that have embraced VeChain are LVMH, Walmart, and BMW. 

VET vs VTHO

Unlike many other blockchains, VeChain has two cryptocurrencies. The main one, known as VET, is the payment currency for the VeChain ecosystem. VeChain is the most popular of the two and has a market cap of more than $2.5 billion. 

The other coin is known as VeThor Token. It is generated using VET. and is used by companies to track their products in the supply chain. It has a total market cap of just $104 million. So, here are some of the reasons we believe that VeChain is a good investment.

In the past few months, the VeChain price has not performed well. After soaring to an all-time high of $0.2842 in April 2021, its price plummeted by over 87% to the current $0.034.

Large market opportunity

The first main reason why VeChain is a good investment is that it is handling one of the biggest industries in the world. While it is hard to estimate, the supply chain market was valued at over $15.8 billion. It is expected that the industry will more than double in 2026 as the industry gets more complicated. Think about the strains in supply chain due to the Covid-19 pandemic and the war in Ukraine. 

Therefore, there is a likelihood that more companies will embrace the platform in a bid to simplify or solve some of their biggest challenges. Fortunately, the number of partnerships is continually growing. 

Some of the major firms using VeChain are DB Schenker, Kuehne & Nagel, Bright Food, Fashion for Good, Haier, and Norway in a Box among others. As they become successful, there are chances that more companies will embrace its use. 

Learn more about how to invest in cryptocurrencies.

VeChain is being embraced by developers

The other reason why VeChain is a good investment is that the ecosystem has been embraced by developers who are building all types of applications. This situation has been made possible by the cat that VeChain has smart contract features that make it possible to build apps. There are now many publicly available apps that have been built using the VeChain technology.

For example, VeChain was used to build Buy me a Coffee, a simple platform that allows organizations and users to support through VET. It was also used to build Vexchange, a decentralized exchange. It has also been used to build projects in the NFT industry like OceanEX, NFT Paper Project, VeGhost NFT, and VeHashes among others. While most of these projects are small, there is a likelihood that they will bounce back in the long term.

VeChain is highly popular

Another main reason why VeChain is a good investment is that it is highly popular among investors and traders. Obviously, this popularity has declined sharply recently due to its performance. However, there are still many people who still hold it in their wallets. 

According to VeChain Stats, the number of VeChain blocks has risen to more than 12.1 million. This is a significantly high amount. At the same time, the number of VeChain addresses has jumped to more than 1.78 million people. And despite the performance of the coin, the amount of VeChain mainnet activity has been a bit stable.

VeChain is cheap

Further, VeChain is a good investment because it is a bit cheap. For one, the price has declined by more than 80% from its all-time high and is currently trading at the lowest level since February 28th. This decline has left a coin that is trading at a significant discount. Historically, bear markets don’t last forever. Therefore, there is a likelihood that its price will bounce back.

Many partnerships

Finally, VeChain is still growing even though the coin price is struggling. For example, VeChain has inked multiple partnerships with some of the biggest companies in the world. For example, it has partnered with Direct Import Goods, PriceWaterhouseCoopers, and Renault. These partnerships are expected to keep growing. 

The post Is VeChain a Good Investment? 5 Reasons We Think It Is appeared first on Coin Journal.

The Safemoon price is in a sharp freefall as investors doubt whether the coin will survive the current sell-off. The SFM token has declined in the past seven straight weeks and the situation is getting worse. It is now trading at 0.00030, which is the lowest it has been since January this year. 

Why is SFM is a freefall?

Safemoon was once a high-flying cryptocurrency that was being endorsed by a multitude of celebrities in 2021. The promise was that holders would get rewarded for just holding the coin. These fees were to be generated from the network’s activities.

Safemoon has not lived to the hype as a number of high-profile developers left the organization. With the Terra network imploding, investors now worry that Safemoon could be next. For one, two groups have already launched serious allegations about the network and its creators. They have been accused of running a classic pump and dump scheme. 

Behind the scenes, the developers are attempting to make the project worthwhile. They launched the second version last year which attracted some fame. At the same time, they launched Operation Pheonix which is expected to invest in wind projects in places like Africa. Its wind turbines are being built by a company known as Semtiv.

Still, there is a likelihood that this project will not be successful. For one, wind turbines are extremely expensive equipment and their rollout is not easy. This explains why only a small part of the world economy is currently powered using wind. Moreover, Safemoon does not have all these resources. For one, the total market cap of the coin is currently $185 million.

Safemoon price prediction

The daily chart shows that the SFM price has been in a spectacular sell-off lately. It fell to a low of 0.00029, which was the lowest level since January. It has managed to move below the important support level at 0.00038, which was the lowest level on May 6th. The coin is still below the short and long-term moving averages.

Therefore, the Safemoon price will likely keep falling as bears target the next key support at 0.00026.

The post Safemoon price is having a meltdown. Buy the dip? appeared first on Coin Journal.