Singapore-based blockchain company VeChain and their cryptocurrency $VEN has been in the news over the Past couple of weeks due to multiple rounds of price volatility. At the time of writing this analysis, the price of VEN stands at US $ 3.60. Compared to the high of March 7th, it can be considered a steep drop.
VeChain ($VEN) First week Of March Rumors
In the first week of March, rumors swept through cryptocurrency forums that the VeChain team is putting out large sell orders to keep the price of the coin low. The rumors caused the price of VEN to crash. There was intense criticism of VeChain on social media. The fall was arrested only when VeChain CEO Sunny Lu strongly refuted the rumors. He assured the investors that the VeChain foundation didn’t sell any VENs in the open market, and has no plans to do so. The price started to gradually come back up.
The below graph tracks the recent fluctuation:
On March 7th, VEN was the best performing one among the altcoins, trading 3.5% higher when all other had lost value. By the end of that day, it took lead over Bitcoin and Ethereum in terms of price increase.
Let’s look at the fundamentals of the VEN, i.e. is it a weak performer? The answer is a resounding “No”. There have been multiple instances of VEN price falling, but then rebounding. The rebound is due to the strong fundamentals. The most important aspect to look for here is the basic use cases of VeChain. VeChain intends to transform the global supply chain business, which is a large industry vertical. How do the consumers know that the product they bought has been produced responsibly, and with ethically sourced raw material? VeChain, with their blockchain platform, tracks the lifecycle of raw material, tracks every step of production lifecycle, and store these as unique records on the blockchain.
Immutable records of raw material and production can then be viewed by the consumers simply by scanning the tags on packages using their smartphone. At a time when there is increased consumer awareness, VeChain provides an important tool for businesses to certify their supply chain. Oslo, Norway-based risk management and assurance services giant DNV GL has already embarked on a partnership with VeChain to enhance their assurance services. In February, the German automobile giant BMW has confirmed a partnership with VeChain for monitoring their supply chain.