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With a market capitalization of $9.3 billion as of Nov. 17, VeChain (CCC:VET-USD) is the 23rd largest crypto according to CoinMarketCap. VET has been on the move lately. Yesterday it was at 14.49 cents, up 150% since its recent trough of 5.783 cents reached on July 20.
However, this is still well off of its highs from earlier in the year. For example, VET hit 25.83 cents on April 17, or seven months ago. It has yet to return to that market value. After bottoming out in July, it has slowly recuperated (as have many other cryptos.)
Clearly, one thing to learn from this is to use average cost investing with crypto purchases. The benefit here is that even if you buy in at too high a price, you have the opportunity of lowering your cost over time. I am still learning to do this with my crypto investments, including VET.
VeChain’s Unique Features
VeChain’s focus as a cryptocurrency is on the global supply chain. Its main purpose, according to its whitepaper, is to improve the management of supply chains and related business processes.
The blockchain platform intends to provide “transparent information flow, efficient collaboration, and high-speed value transfers.” To do so, the team behind VeChain wants to improve the global supply chain management process.
Decrypt magazine detailed the early days of VeChain in an article:
“VeChain was founded in 2015 by Sunny Lu, the former CIO of Louis Vuitton China. He combined his expertise in luxury goods with blockchain technology to create an IoT (Internet of Things) application for supply chain management. He remains the CEO of VeChain through a non-profit called the VeChain Foundation.”
One of the goals of founding VeChain and the related crypto was to fight against counterfeit goods, especially in the luxury sector. If companies can keep track of each piece of inventory, they have a way to fight against fake products. For example, they can validate whether a particular item sold or offered for sale is a true company product.
This tracking system is now in use by a number of companies around the world. Several popular uses are food chain safety and traceability as well as carbon footprint data management. VeChain is also used for a vehicle ID and passport management system. This will significantly cut down on stolen cars and chop shop crimes.
Other uses are retail management (especially luxury goods), logistics solutions, natural gas supply and transportation tracing, and electronic copyright and documentation use.
Where This Leaves VeChain
VeChain’s website lists a growing number of companies that have adopted its logistics system. It works by using one of three techniques: radio frequency ID (RFID), QR codes or near field communication (NFC).
VeChain uses sensors from different manufacturers to trace goods through blockchain software in each part of the supply chain. This allows companies to prevent counterfeits, theft and other types of fraud. It allows businesses to guarantee the authenticity of the item purchased.
Given VeChain’s fairly low market value — especially compared to the world of supply chain logistics management — it could rise further.
However, VeChain is not easy to buy or sell. For example, it still does not trade on a major exchange like Coinbase Global (NASDAQ:COIN). Virtually no brokerage firm like Robinhood (NASDAQ:HOOD) or Webull allows trading in VET.
However, you can buy it by setting up an account with Binance.US or Gate.io. This is a little tricky, though, since you have to first buy a stablecoin like Tether (CCC:USDT-USD) or else swap it for another cryptocurrency that you transfer into the account.
However, that will not prevent the currency from rising in the long run, especially as more companies realize the value of the VET crypto blockchain.
On the date of publication, Mark R. Hake held a long position in VeChain crypto but did not hold a position directly or indirectly in any other security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.