Recently, I perused through InvestorPlace contributor VET-USD) was on the list. But I wasn’t surprised to see VeChain there. That’s because this altcoin is super-affordable and has massive breakout potential.VeChain (CCC:
You may have never considered owning a cryptocurrency that’s connected to supply chains and logistics. Yet, it’s a largely untapped opportunity that could turn out to be quite lucrative.
Of course, we’ll certainly discuss the price action of the VET token, too. But it’s also important to understand what makes this crypto network so promising.
And the good news? You don’t have to be a logistics expert to take a stake in this fascinating yet largely under-the-radar digital asset.
Analyzing the VeChain Price
In the title of this piece, I teased you a bit by suggesting that VET could potentially hit $1. But is this realistic?
Based on what took place earlier this year, I believe it’s possible. For one, consider the fact that VeChain started 2021 at around 2 cents. Then take note of the 10x move that happened within a few months’ time.
In April, the VET token price reached a 52-week high of nearly 28 cents. This demonstrates the moonshot moves that can happen when the crypto community gets into a buying mood.
As of Jun. 1, the VeChain token was trading at around 12 cents. Perhaps the previous rally was too far, too soon — but if another 10x move were to happen, $1 would be a perfectly reasonable price target.
The Logic of Logistics
Founded in 2015 by Sunny Lu and launched in 2016, VeChain took a niche-driven, specialized approach to its development from the outset.
Some cryptocurrencies were designed to be used for all kinds of transactions. The VET token, on the other hand, is focused on helping to move goods and services across the global supply chain.
So, I suppose you could label it as a “logistics token” if you’d like. Still, there’s an important innovation here, as VeChain seeks to leverage the smart contract feature of blockchains to make supply chains more transparent.
Let’s take the food supply chain as an example. You might be surprised to learn that the food industry is beset with transparency and assurance issues, sometimes even leading to health problems for consumers.
VeChain is leveraging smart-contract technology to address these issues, thereby enhancing transparency and trust:
“By scanning the QR code on desired products, consumers can acquire detailed information secured by the blockchain, including the source and ingredients of the products, geographic location, logistics information, inspection report [and] even temperature data.”
Not only that, but the data is “time stamped and cryptographically signed” by the party that’s producing it
One Token or Two?
So, now you know the basic idea behind VeChain. However, it’s a little more complicated than what we’ve described so far.
Interestingly, the network has a two-token system. And, according to InvestorPlace contributor Mark Hake, it offers what might be compared to a dividend.
“An ‘offshoot coin’ called THOR, or VeThor (CCC:VTHO-USD) is paid to every holder of VET tokens,” Hake explains.
Okay — so this not exactly a dividend. But it is an added incentive to take a buy-and-hold position in VeChain.
Hake calculated that “VTHO tokens are worth 4.958 cents per 10,000 VET tokens daily, or $18.10 annually.” That, in turn, could equate to a dividend yield of around 1.44% annually. This is actually better than what you might get with some blue-chip stocks. Plus, unlike the dividend you’d receive with most stocks, the payouts to VET token owners are distributed daily (in VTHO tokens).
The Bottom Line
I highly recommendAdmittedly, VeChain is unusual and niche-oriented. It won’t appeal to everyone.
Still, though, you might like the idea of investing in a more transparent logistics network. And, perhaps the crypto “dividend” that this name has on offer appeals to you.
If that’s the case, VeChain and its VET token could be exactly what you’re looking for.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets