IOT Cryptocurrency VeChain Slides 13%, but Outlook Still Bright

VeChain declined sharply on Friday, extending its losing streak to four days as investors shrugged off news of a major partnership with a global risk management company.

VEN Price Levels

VeChain’s VEN cryptocurrency fell 13% early Friday to $6.79, where it was trading near session lows. Nearly $128 million in VEN tokens was traded over the past 24 hours, with Binance accounting for roughly half of the transactions. Lesser known Lbank processed nearly one-fifth of the daily transactions through the VEN/BTC pair.

There are currently more than 455 million VEN tokens in circulation out of a total supply of 873,378,637, according to CoinMarketCap.

The decline on Friday follows a series of volatile moves for VEN. The digital currency spiked to record highs on Monday before reversing course to settle lower. It would extend the losses over the next three days. Over the span of four sessions, VEN has declined nearly 19%. Prices are down nearly 30% from Monday’s high.

Even with the latest drop, the VeChain blockchain has a total market cap of $3 billion, placing it 16th among active cryptocurrencies.

IOT Revolution

In an industry with constant churn, VeChain has emerged as one of the most stable platforms, having been in existence since the dawn of the blockchain era. According to Hub Culture, a social network service that operates VEN currency, the VeChain project began as early as 2007.

The project is said to be on the leading cusp of IOT, which stands for the Internet of Things and describes the world of connected devices. VeChain is exploiting the use of RFID chips, NFC technology and sensors in key IOT-driven sectors, such as automotive, transportation and audit logistics. It is also applying these and other solutions to agriculture, pharmaceuticals and even audit services.

Although the size and scale of the IOT market varies depending on who you ask, Cisco has described the segment as a $19 trillion economy. That figure is derived from looking at productivity enhancements, business growth and economic multipliers. In Cisco’s estimation, both public and private sectors will benefit from the IOT revolution.

VeChain has already landed some highly reputable partners, including global consulting firm PricewaterhouseCooper, which chose the blockchain company for its incubator program. Earlier this week, global risk management firm DNV GL announced it was partnering with VeChain to boost asset ownership standards. The partnership seeks to develop a blockchain application that tracks food, beverages and retail with the ultimate aim of expanding the solution to the automotive and aerospace industries.

VeChain CEO Sunny Lus said the project combines “assurance and blockchain to help customers improve trust in their products across multiple dimensions; from quality and safety to performance aspects.”

Although VeChain has largely flown under the radar of the crypto boom, it remains one of the more solid investment plays when assessed purely from a fundamental perspective. Its performance has also been exceptional, with prices rising more than 2,600% since the start of December.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi