VeChain Hits Record Highs Despite Market Downturn

VeChain (VEN) reached all-time highs both in dollar terms and against Bitcoin, trading on near-record volumes. While the entire market is in the red again, VEN is breaking out,

VEN, a token dedicated to the Internet of Things, has in its plans a more robust distributed ledger, capable of greater speeds compared to Bitcoin. However, the current rise of VEN may be due to Binance traders looking to create the next hit coin. With users flocking to the exchange, VEN is benefitting from the more active trading.

The climb of VEN was not as steep as that of TRON (TRX) or Verge (XVG), but the coin remains volatile, losing as much as 30% in the recent market shakedown. But the recovery has been even stronger.

The value of the blockchain solutions offeret by VeChain hinges on partnerships with Chinese businesses. This may be something of a risk factor, as projects like TRON have caused jitters due to the opaqueness of the actual business.

We are excited to announce that VeChain will partner with Fanghuwang, one of the fastest growing online lending platforms in China with $3.3bn AUM. With this partnership, VeChain Thor solves major problems within one of the largest global industries. https://t.co/2neBmo0yot

While Western investors are backing those projects, it is harder to estimate the value of those business contacts and tell what part is real and what is hype.

"I am proud to announce that as of today, Breyer Capital has agreed to support VeChain through an official advisory role," - Jim Breyer, founder of Breyer Capital. We look forward to exploring with Breyer Capital what is to come. https://t.co/aW02cCtZ1G

The biggest challenge for VEN would be to actually deploy the IoT hardware and make it communicate with the blockchain. While this is starting to sound revolutionary, the story of IOTA may serve as a warning. The digital asset was created to serve a vast network of the Internet of Things, which is still in the hypothetical stage. IOTA itself became the object of wild speculation.

The two big advantages of VeChain are working solutions on tracking luxury goods. The other advantage is that the token VEN is compatible with MyEtherWallet, coming with the additional security of an already established wallet. Except for phishing, MyEtherWallet has rarely shown flaws in holding tokens.

The VeChain project is also led by a foundation and has already established a large developer team - two positive factors ensuring further development. But even with those positive sides, VEN is still at risk of attracting new investors expecting quick growth. The VEN market price is still volatile, and it is best not to over-invest in this project.