VeChain (VET) Price Forecast: Assessing the Potential of Blockchain in Supply Chain Management

Evaluate the potential of VeChain in our medium-term to long-term VeChain price forecast. 

VeChain (VET) is a smart contracts blockchain platform for increasing efficiency across Logistics and Supply Chain Management. 

Sunny Lu, an EX-CIO for Louis Vuitton China founded Vechain as a private consortium chain in 2015. Sunny Lu partnered with a number of enterprises, as the business model sought how these enterprises were going to adopt blockchain tools. 

In 2017, Vechain transitioned to a public blockchain and launched its first cryptocurrency, VET, an ERC-20 token. The following year in 2018, Vechain launched its mainnet and the native blockchain token, VET. 

In this article, we are going to evaluate the potential of Vechain as a supply chain management chain. We will assess controversies surrounding the blockchain, several allegations of pushing VET using hype marketing, the chain’s ability to address challenges across the supply chain and logistics, as well as the potential for industry adoption. 

Controversies facing Vechain

• Allegations of Hype Marketing
• Partnerships

Allegations of Hype Marketing

Vechain has partnered with a host of Tier 1 exchanges and cryptocurrency platforms. Despite these partnerships, Vechain has failed to perform to its price potential according to the community. For example, regardless of these partnerships creating a plethora of utilities, use cases and applications, Vechain still trades at $0.0156. 

A section of the cryptocurrency community alleges that Vechain has been undertaking hype advertising strategies to promote its cryptocurrency, VET. 

Hype advertising or hype marketing involves creating anticipation, buzz, excitement and interest in a product, often building heightened expectations and creating a sense of urgency for people to buy. 

Partnerships

Partners across Vechain’s blockchain ecosystem include several tier-1 companies like PWC, Walmart China, auto-maker BMW, LVMH and Ningbo Port. 

However, the blockchain has come under controversy for having such an impressive partner list, yet failing to reflect in the coin’s price. Which might have resulted from the blockchain’s inability to attract significant investments. Over the last 1-year, Vechain’s native token VET has shed over 48%.

Source: TradingView

Social Sentiment

While studying social sentiment for any particular investment asset, we try as much as possible to gauge the social sentiment on Quora. 

The majority of the reviews on Quora were positive and lauded Vechain’s impressive use case across the logistics and supply chain management industry. 

For example, a graduate from the  Victoria University of Wellington Scott Patterson estimated a Vechain price forecast of $0.5 – $7 in the upcoming bull run considering the Vechain blockchain’s extensive use-case and partners. For Mark Caraway, Vechain already looks strong and promising given its application across supply chains. 

Vechain’s Potential to Disrupt the Supply Chain Business and Solve Logistic Challenges

The primary mission for Vechain is to revolutionize traditional business paradigms around the supply chain and logistics. For this reason, the blockchain has garnered significant recognition for its accomplishments in the supply chain sector, an industry that has remained largely un-automated for many decades. 

Through its efforts in establishing a decentralized trust infrastructure for multi-party ecosystems, VeChain has already achieved remarkable success, attracting prominent partners, new use cases and government entities to its cause.

Leveraging transparent technology devoid of any central vulnerability or control not only enhances security, efficiency, and the seamless tracking of diverse data but also drives cost reduction through trustless smart contracts. 

This digital transformation of trust and collaboration finds applications in numerous domains, such as carbon management, supply chains, global logistics, incentivized ecosystems, technical product documentation, and beyond. Thereby delivering significant advantages across the board.

VeChain’s official documentation highlights its distinctive features, including its dual-token system and groundbreaking protocols like ‘fee delegation.’ The all-in-one ‘ToolChain’ platform is particularly important, as it enables crypto-cautious companies to utilize VeChain’s Blockchain-as-a-Service solution by making payments in fiat. Smart contracts seamlessly manage gas payment costs, ensuring a smooth experience on the network, even in stringent regulatory environments.

VeChain’s Traceability Solutions on Product Authenticity and Consumer Trust

VeChain IDs play a vital role within the VeChain blockchain ecosystem. They assign a distinctive identifier to each product, employing sensors to meticulously monitor every stage of the supply chain. This meticulous tracking creates a secure environment, ensuring the documentation and verification of movement data for all involved parties.

VeChain’s core mission revolves around establishing a reliable means to ascertain the authenticity and quality of tangible products while simultaneously thwarting fraudulent activities. 

The platform strives to furnish stakeholders with in-depth insights into products and business operations, ultimately elevating market transparency and fostering fairness and efficiency in global trade. 

Notably, VeChain has already garnered an impressive roster of clients, counting major corporations such as LVMH, Walmart and BMW among its ranks.

VeChain’s software also empowers enterprise developers to design and operate decentralized applications (dApps). Consequently, thanks to VeChain’s blockchain infrastructure, companies can integrate dApps into their operations, thereby enhancing the quality of their services and products. 

The project leverages its proprietary solutions and innovations, including the VeChainThor Blockchain, MyStoryTool, ToolChain and Internet of Things (IoT) technology, to streamline various processes and drive efficiency.

Risks and Benefits of VeChain’s Governance Structure and Centralization Concern

VeChain has faced criticism for its centralization, as the VeChain Foundation holds a significant number of VET tokens, granting them substantial influence over the network.

The discrepancy between its partnership potential and current market performance raises doubts about VeChain’s ability to overcome its challenges. While it remains a promising project with substantial potential, it has yet to fully realize its hype. To reach its full potential, VeChain must address investor concerns regarding its centralized nature and its limited market attention.

Conclusion

In conclusion, VeChain stands at the forefront of blockchain technology, offering a promising solution to real-world problems through its innovative approach to supply chain management and product verification. While it has encountered criticism for its centralized nature and faced market challenges, its potential remains undeniable.

The partnerships it has secured with industry giants like LVMH, BMW and Walmart underscore the faith that major players have in its capabilities. VeChain’s commitment to addressing concerns about centralization and market recognition shows its dedication to continuous improvement.