Vechain (VET) - Reviews & Ratings
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|Dr. Doom 209 rated: August 15, 2019 23:41:06|
This started out as what was generally within the cryptocommunity perceived as a legitimate project, back in the day when it was still Vechain (VEN). In 2018 they launched their mainnet and switched their ERC20 token (VEN) for their mainnet coin Vechain Thor (VET) at a 1:100 ratio (this is good to know, bc on CMC only the VET history is visible, not the previous VEN history, conveniently). So far so good. But what people later criticized this project for was completely diverting from their initial focus of supply chain management into a "money grab" ICO platform (an Ethereum competitor). Also this project is so-called Proof of Authority, which means you need to acquire permission to become a validating node. And thus it seems more an almost completely centralized corporate blockchain.
There was quite some FUD spread by Youtuber ChicoCrypto about this project, but like some others responded that seemed more a lot like conspiracy theory, however there were some shady practices exposed nevertheless. Youtuber SunnyDecree gave a reasonable take on the whole situation; some of the additional takeaways of some of the deceptive practices:
- overhyping the so-called BMW deal
- Announcing a MacDonalds that deal, that later was denied by MacDonalds.
More from him (and also links to the ChicoCrypto FUD) in his review video: https://www.youtube.com/watch?v=nDTNJuoRQaE
On the flip side, Vechain Permabull Youtuber Boxmining is still super bullish on this project, this video is his reaction on attending a Vechain summit recently: https://www.youtube.com/watch?v=bhJHAmw55dw. And it's obviously quite positive.
Other potentially positive news is that Vechain's Founder had announced that over a period of 12 months it would buy back $24million worth of VET to take those out of circulation (token burn); that is about 10% of the marketcap currently. Token burns are often perceived positive for price direction, because a reduced supply with equal demand should theoretically raise the price. https://finance.yahoo.com/news/vechain-foundation-buy-back-25-124700520.html?.tsrc=fin-srch. A critical question might be asked: with what money is Vechain going to finance this buy back program, is that investors money or from revenue (does Vechain have revenue)?
So what do I make of all this? Well, honestly in the early days I saw this project as relatively serious as potentially interesting as a supply chain management solution. Now that is a completely permissioned corporate blockchain, I am actually not so sure where the value for VET holders should come from. If that is from ICO's, then I am afraid that ship has more or less already sailed. I am very allergic for the hyping of partnerships that turn sour quickly, with a high suspicion of trying to pump the coin price. So I do totally not think this project is anywhere near a scam in the purest meaning of the word and that they are (or at least up until now have been) actually building a real product, but I have lost a lot of confidence along the way to be totally honest.