When you are being backed by the largest emerging market, which has become the lifeline for the majority of the world, you are bound to reach great highs! The Chinese Ethereum Killer, VeChain, has gotten a soft-corner marking its spot with the second-largest country in the world! Stick around to learn more about this partnership! Hello everyone, welcome back to the channel.
For today s content, we have in account of China s involvement in VeChain, as a cryptocurrency that has blocked the path of other digital assets, even Bitcoin. But before heading forward with today s content, there are some disclaimer lines for you.
Firstly, cryptocurrencies are volatile assets and change frequently; therefore, the prices mentioned in today s content would have switched to a different range by the time you get to watch this content. And secondly, this content, in no manner, intends to be taken as financial or investment advice. The content of this content is purely intended to fulfil the purpose of being informational and educational.
You are requested to conduct your own diligence or consult an expert in this regard to make better financial decisions. The crypto market was highly affected when China declared its restrictive financial regulation on financial institutions towards digital currencies.
China is considered the growing hub of billionaires and millionaires. Therefore, their involvement in digital assets would have undoubtedly increased the asset s price action. China’s entry into the digital market has been the most awaited since the existence of digital currency.
However, the very recent action of the Chinese Government towards allowing crypto into their market came as a massive shock to the market, which in accordance with Elon Musks Bitcoin suspension announcement aggravated the market bump, which is not to mention is still going on.
Most of the cryptocurrencies are trading with a red, mostly sideways. However, China’s certain movement towards a specific currency talks otherwise of its decisions of not allowing digital currencies at all. VeChain is a blockchain platform whose utility is desired by the majority. With VeChain’s technology, any business can change its supply chain management to the next level.
Remember the recent ship blockage in the Swizz Canal. Well, that s something that describes the present situation of supply chain management. Overall, the existing system is not able to cope up with the trade management; therefore, here is the part where VeChain plays its abilities. VeChain s blockchain is specifically designed to curb the supply chain irregularities, efficiently fixing the existing system quality.
Through VeChain, every product is given a unique identity through which the subject can be tracked and traced for efficient delivery. VeChain was founded by Sunny Lu, and maybe because of its origin, the Chinese government supports this token to the fullest. This token is known as the Chinese Ethereum Killer because on its platform; there are two distinct tokens.
VeChain Thor, and VeChain Thor Energy, the former is the one used for transfer value across the VeChain network; and the latter is used as energy or gas to power smart contracts. This system was initially developed for Ethereum.
Time and again, the Chinese Government has shown various pointers towards favouring VeChain; since last year, VeChain joined China s Animal Health and Food Safety Alliance as a council member to provide Blockchain Technology for Enterprise members; therefore, providing technical and infrastructural support.
Very recently, this year, China announced its 14th five-year plan setting out the policy direction for the worlds second-largest economy in the next half-decade. VeChain has seen a boom in China, according to a report by the state-backed TV station Shanghai Media Group (SMG). This news Channel made a report on VeChain’s role in a 5-year national plan to develop its blockchain capabilities.
The Chinese Government has always been sceptical about bitcoin and other altcoin mining. However, on the contrary, VeChain is one of only a few crypto projects approved by China. Previously in March 2019, VeChain was added to a list of 197 approved blockchain projects.
The recent blockchain regulations that the Chinese Government has proposed point towards China being notoriously suspicious of technologies and organizations that lie beyond its control. As mentioned earlier, VeChain is the only cryptocurrency project that is seen getting support from Beijing. It started as a subsidiary of Bitse, one of China’s biggest blockchain companies, based in Singapore, but has offices in China.
VeChain is, therefore, a domestically developed decentralized finance operation that is similar to the Ethereum blockchain network. China has been keeping a firm hand on the inroads of the benefits of blockchain technology, which would help China drive towards making it the largest economy. In October 2019, President Xi Jinping lavished praise on blockchain technology, arguing its imperativeness towards acceleration of China’s development.
A recent report that was published by the Chinese website Chain News has described the Deputy Director of China’s Changing District, Pan Min, repeatedly praising VeChain’s technology and business development. Last Month, the VeChain Foundation on its Twitter handle confirmed a meeting with the Chinese officials from three important Chinese districts. As per the reports, the representative from the enterprise blockchain platform and Government talked about potential transformative collaborations.
The organization claimed to be ever-ready to help all sectors, from private companies to governments. In the meeting, the primary decision involved how VeChain could make a difference in the corporate sector, furthermore, the potential assistance of VeChain on the impact of the Covid-19 pandemic in view of the platforms potential to provide incentives to drive a low-carbon emission ecosystem.
Looking at the said actions of the Chinese officials, we do have an idea that Beijing is currently working with VeChain to aid the development of China’s digital version of their domestic currency, the Yuan. China did not consent to take in any digital currency outside China, as it was developing its own digital asset. For the time being, while China cultivates its own asset using VeChain blockchain technology, this token has become the biggest blockchain company by far within China.
Several analysts say that in a few years time, Ethereum would outperform Bitcoin, which is currently the leader, and the largest cryptocurrency; however, if VeChain gets fuller support from China, then this token can outperform Ethereum, which is presently the second-largest token in the digital world. As for VeChain’s utility towards the ongoing Covid-19 pandemic, this tokens blockchain ledger has been used for storing vaccination records in hospitals.
Furthermore, while the pandemic was on the hit, VeChain, in conjunction with DNV, introduced the blockchain-based risk self-assessment application, trust, which is built on the VeChain Thor public blockchain, it combines DNV’s infection risk management methodology and tracks record of providing globally recognized compliance standards in order to assist the authorities to manage and contain the risk on Covid-19 pandemic. On the 22nd of June 2021, the Peoples Government of Suzhou New District, VeTrust, was showcased as one of the top 10 blockchain applications and was formally acknowledged by officials.
The Chinese local government has been using the VeTrust protocol to visualize the entire process of infection risk management for all administrative areas in the district, covering 95 residential communities and over 300,000 residents, with immutable, trustless proof of hygiene compliance which the government securely shares on a daily basis.
Looking at VeChain’s tremendous support from the largest populated country and the second-largest economy, it’s hard not to mention VeChain’s strong bullish price action in the near future. JP Buntinx of Crypto mode ranks VeChain highly in its list of 2020 among the Ethereum Killer list. It further added that some of the worlds biggest brands are already experimenting with VeChain’s technology, including Walmart.
Also laid a disclaimer that competing with cryptocurrencies will not be easy, especially the outpowering Ethereum’s part. Currently, VeChain is trading at 0.0729 dollars with a green 5.76% change. According to Coin market caps, with a market cap of nearly 5 billion dollars, the coin is ranked as the 21st most prominent cryptocurrency in the crypto world.
Since VeChain is trading with green, we can understand that the market is finally rebounding. Bitcoin is giving back its gains and dragging the rest of the market lower. Indicating a higher bull run for all altcoins. VeChain dropped off its predicted support levels at 0.1134 dollars due to the market bump and is currently hovering above its support levels from the lows at 0.066 dollars on 14th March 2021.
The price trajectory of the coin is seen to have formed an ascending triangle and extended as a consolidating horizon, which is flattening at the end. Therefore, there are high chances that the coin would bone off from this region and run towards resistance at 0.098 dollars. And with a higher buying pressure, the coin would surely retest its highs at 0.11 dollars.
However, on the flip side, since the market is rebounding, there are high chances that corrective measures will be followed, and VeChain could dip to a higher low at 0.054 dollars, lowest on 21st February 2021. Overall, investing in VeChain, while its prices are this low, would be the best buying opportunity for investors because this coin will undoubtedly give a much higher return in the coming months.
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