Should I Buy VeChain (VET) in 2021?

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INTRODUCTION

VeChain (VET) is not the usual type of cryptocurrency we are used to seeing. It is the stated goal of VeChain "to build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration, and high-speed value transfers". [VeChain. DEVELOPMENT PLAN AND WHITEPAPER. (Accessed November 9, 2021). To clarify this:

VeChain is a blockchain platform designed to enhance supply chain management and business processes. Its goal is to streamline these processes and information flow for complex supply chains through the use of distributed ledger technology (DLT).

[Georgiadis, S. The Top 5 Things to Know About VeChain and Its Supply-Chain Crypto. (November 9, 2021).

In this subsection of the Leo Finance VeChain (VET) Coin Guide let's investigate this novel blockchain with a view as to whether or not VeChain is a coin worth buying.

FACTORS IN FAVOR OF INVESTING IN VECHAIN (VET)

• VeChain has entered into many strategic partnerships bringing exposure to both the VET coin and the VeChain platform. A positive result from these partnerships has been the injection of capital into the VeChain blockchain. This injected capital attracts the developers whose new projects draw in more users which yields more positive publicity.
• VeChain has collaborated with multiple well known parties who are expected to launch new projects on the VeChain network including: Amazon Web Services, DNV Company, Walmart China, BMW, Bayer Pharmaceuticals, and GrantThorton.
• VeChain is positioned as one of the best blockchains for smart contract execution for Decentralized Finance as well as the hosting of eNFTs (enterprise NFTs).
• VeChain is an innovative protocol that is a pioneer decentralized supply chain network. As such, VeChain enjoys first mover status in its niche and should be able to draw additional partners adding to the chain's value.
• Expert analysis on both a fundamental and technical basis point toward the VET coin price continuing to rise near to mid term.
• The VET coin (VeChain's native coin) is highly liquid as it is listed on all of the major exchanges worldwide.
• VeChain's consensus mechanism is Proof of Authority. For those unfamiliar with Proof of Authority consensus, Binance Academy describes it well and said description may be found here. This consensus mechanism provides an efficient solution for business applications including supply chain applications.
• The supply of VeChain coins is limited to 86,700,000,000 coins and all have been minted creating a fixed supply. As new partnerships are made, the capital inflow therefrom flow directly to the coin thereby driving its price [see, e.g. Sun, Z. Is VeChain a Buy?. (Accessed November 9, 2021).
• VeChain (VET) may be staked for various preset times earning passive income.
• VeChain presents a disruptive technology and its contributions in the business area of supply chain enterprising are glaring which should yield mass adoption driving its price.

FACTORS AGAINST INVESTING IN VECHAIN (VET)

• There exists the possibility of stiff competition in the near future for VeChain. Several more traditional and popular technology companies may engage the cryptoverse with similar blockchain technologies. Possible competitors include: IBM, Verizon and Amazon.
• According to the VeChain Whitepaper [supra.] a second native token, VeThor is generated from the VET coin. As such, VET may be viewed as a derivative coin in nature possibly making it a security and therefore subject to SEC regulation.
• As per the experts, much of VeChain's VET price movement is pegged to the overall market for cryptocurrency. Therefore, significant market crashes and/or unprecedented industry changes (i.e. regulation) could adversely affect the price of the coin.

TOKENOMICS

Per CoinMarketCap, at the time of the writing of this article (November 9, 2021 at 07:10 EDT) there is a circulating supply of 64,320,000,000 VET. With the current price of $0.1791 the market capitalization of VeChain (VET) is $11,516,640,389. There is a total supply of 86,712,634,466 VET coins authorized yielding a fully diluted market capitalization of $15,531,082,910. Presently, VeChain (VET) is ranked No. 22 by CoinMarketCap.

VECHAIN (VET) RELEVANT PRICE HISTORY

• During the first four months of 2021, the price of VeChain (VET) rose from around 0.019 in January to its all time high in mid-April of $0.278.
• With the Bitcoin and cryptomarket crash in mid-May 2021, VeChain (VET) lost 80% of its all time high price.
• Since mid-May, VeChain (VET) has recovered more than half of its losses, presently trading at $0.1791 as of the time of this writing.

A review of the VeChain (VET) price chart for the entire history of the project demonstrates the parabolic rise in the first four months of 2021 as well as the 80% crash in mid-May. However, thereafter, the chart demonstrates a nice upward resilient trend (with obvious corrections), especially when taking into account external market forces and periods of unrelated project market volatility:

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VECHAIN (VET) REASONABLE PRICE PREDICTIONS

A chart from the Economy Forecast Agency shows its VeChain (VET) price predictions from November 2021 through November 2023:

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DigitalCoin predicts a price for VeChain (VET) of $0.3231764416 in 2022 with prices continuing to rise to $0.8281464243 by 2028. Results from DigitalCoin are summarized on the following bar graph including the intermediate years predictions:

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And WalletInvestor has presented its predictions for the remainder of 2021 and 2022 in graph format as follows:

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Please keep in mind that while these price predictions paint a rosy future for VeChain (VET) as an investment, they are just that - predictions. No one has a crystal ball that can guarantee future performance. As such, as a potential investor, you may take the prediction for what it is, as the same is no guarantee of future price performance of VeChain (VET) due to the volatility of the cryptocurrency markets.

CONCLUSION

This subsection has provided you, the potential investor in VeChain (VET), with the key elements to consider in reaching a final decision on this token. In reaching a final investment decision many differing opinions should be sought out. Reliance on one source is highly discouraged.

Please remember, this subsection of the Leo Finance VeChain (VET) Coin Guide is merely a starting point and should not be deemed a substitute for doing your own diligent research.

It is a given that every individual investor possesses a different present financial circumstance, tolerance for risk, and investment strategy. These must be weighed in light of the factors and information above provided in finalizing any investment decision. This task is left to you as the potential investor to make the final investment decision that is appropriate for your individual circumstances and in your best interests.

And as always, never invest more than you can afford to lose. Good luck!

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