Vechain has had a busy September, following its mainnet launch on the 1st of the month. Below we’ll detail updates that the enterprise blockchain platform has announced and where its price could be heading before the end of the year.
China, the world’s largest emitter of greenhouse gases, has recently stepped up its efforts to implement and roll out a system to reduce its emission. This is known as their Carbon Bank Project. Its aim is to tackle the issue of Climate change reducing emission and promoting renewable energy.
The scope of China’s Carbon Project runs very deep, it covers aspects such as the Chinese emission trading scheme and implementing this into its Carbon Trading market. This market is very lucrative and twice as big as the European Emissions Trading Scheme.
Think of the emission trading scheme as a marketplace where companies, businesses, or enterprises can buy or sell carbon credits to each other. In 2017, the average price per ton of Carbon in China ranged between $3-10 within the 7 pilot cities comprising of 3000 emitters approximating to $680 million in total transactions.
In the midst of this program, this September Vechain announced its partnership with BYD, China’s largest electric vehicle manufacturers. The partnership is aimed to tackle carbon emission imbalances, for one. This will be the very first enterprise-level application, with data from millions of cars, buses, and trains this information will be put onto VechainThor’s blockchain platform.
We are currently in a bear market, but one thing is certain: China is very bullish on blockchain technology, this is evidenced by them being the number one leader in blockchain patents applications filed in 2017 and it’s not going to stop there.
Since Vechain’s mainnet went live on June 30th, and with token swaps completed in early September, the price is currently sitting at around $0.012 USD. The price prediction and outlook for the next 3 to 6 months will be based on a conservative approach—but anything can happen with cryptocurrencies and major price movements can happen at any point in time, like how Ripple in late September going from $0.32 USD to $0.69 USD in just a few days.
Based on factors considered, our price prediction for Vechain will be from $0.025 USD to $0.045 USD.
This is due to the factors explained below, including the price of THOR (VTHO) tokens and its use and Transactions on the VechainThor platform.
The THOR Effect
Ultimately, many believe that the value of the VET token will come down to the value of THOR it produces. So what is the value of THOR? Well, we know that the minimum production rate is going to be .00042 THOR per VET per day, but how much is 1 THOR worth?
We’re not quite sure yet. There hasn’t been much THOR price action in the first two months because volume has been low. Many seem wanting to hold their THOR until volume appears to increase price.
Also, the only place it’s available to trade is on the LBANK exchange. This will all change in the coming months once OceanEX trading platform comes live at the end of October.
OceanEx will be running of VechainThors blockchain platform and holders will have the ability to convert or reinvest VTHO straight into VET and thus increasing the VET price.
Demand for THOR will also increase once Vechain’s enterprise partners start using the blockchain. Everyone for this moment as the project really “comes to life”.
Most of the enterprises are currently on test net running testing transactions, but this will soon change. We are expecting a migration over to main net soon where we will see an increasing number of transaction and smart contracts to occur before the year ends. Transactions can be monitored on Veforge.
More Transactions Coming
The more transactions and smart contracts on the chain mean more VTHO will be burned. These transactions require VTHO to be used and burned.
As more VTHO is burned, enterprises will need to go on the market to buy more VTHO in order to execute blockchain writing. This would thus increase the value of VTHO. If an enterprise doesn’t want to go this route, it could buy VET and produce its own THOR; a move which should see a price increase in the native coin (VET), still boosting the value of holders.
While all of this happens, Vechain is currently in talks with the Chinese government to create a new carbon ecosystem—this time with multiple participants (large enterprises) that could. take part. This would be even bigger than BYD’s Carbon Credit application for electric vehicles. Vechain could find itself as the primary blockchain for an entire ecosystem of the “tracked” economy within Chinese initiatives.
What’s Coming Next?
ICOs are coming to life on VechainThors platform. There have been several ICOs announced that will run on the VET platform. So far we’ve seen announcements from OceanEx (October this month), Plair, Safe Haven, and DecentBet. As each of these launches, unique opportunities will be given to VET holders, as well as higher usage of the Vechain blockchain.
Next, the China international Import Expo in November 2018 (inShanghai), is the biggest expo of its kind in the world. The President of China will be in attendance. At the expo, Vechain and DNV GL will showcase to the world their cold-chain Logistic Solution and “MYSTORY” solution. Attendance is at the specific request of the Chinese government, and enterprises from more than 100 countries and over 150,000 professional buyers are expected to attend this event
This is just the beginning of an exciting journey ahead, mass adoption has already begun
Vechain will establish itself as the leading enterprise platform having real-life applications and changing the way business conduct their operations with each other and the world.