In the light of increased regulatory scrutiny and widespread clamp down of shady ICOs and projects, VeChain and their insistence on regulatory conformance from the get look like a great decision in hindsight.
Where does the biggest strength of VeChain lies? You can get a lot of answers to this but it is almost a general consensus in the VET community that they have the best use case and are furthest ahead in regulatory compliance.
This side of VeChain is emphasized in a great Twitter thread posted by one crypto trader, which we post here in entirety:
Serious post. @coincidencexbt this one is for you bud. FA for tech (Spoiler: Crypto is all startup tech companies)
1) When I was a young frog I had lots of experience in the tech sector for fortune 500 companies. Let me take you inside a major tech project.
2) It all starts with a business case. Basically somebody has a business problem that needs to be solved by tech. They have to provide a reasonable reason why the company should spend money on this project. This pitch is usually just a powerpoint showing the reason why?
3) The cost and the benefits/cost savings this project would bring to the company. If the project is big enough it goes to the board for approval. The board cares about the cost/benefit of it. Sometimes the benefit is that if they don’t do this thing they will not be able to
4) comply with a regulation. And therefore can’t do business. But more on that later. It also says if the project will be built inhouse or by a 3rd party. After the project is approved. If they decide that it will be a 3rd party doing this thing they send out RFPs.
5) RFPs are just requests for proposals tech companies provide their proposals. Here is why my tech fits your business needs and here is the cost. Why is this important? Because this is what your fave crypto will have to do at some point in the future.
6) Which is why IT IS SO IMPORTANT that whoever is the CEO of your company has experience talking to big players and pitching them. Remember what Ven partnered w/ DNV GL and had a presser? The DNV GL person said something like a lot of other crypto companies spoke to them but
7)Ven was the only one that spoke to their business needs. NEVER EVER forget this. THE BEST TECH DOES NOT ALWAYS WIN. The smooth talking CEO or the CEO with the most connections wins..
8) The other major factor about deciding whose proposal you will pick is cost. Everything has to do with cost. The board of major corps don’t care that your shitcoin will revolutionize whatever industry. Every year companies make budgets for their fiscal year.
9) This includes money for every division within the company. Everything is accounted for even how much for new/old IT projects there will be. Again if the cost is not worth it for them to bring outside help they will either do it themselves or not do it at all.
10) This is getting long and I will end it with this. The thing no one ever talks about with these blockchain projects is regulation. Do you know what SOX, DFS, Dodd Frank are? Spoiler regulation companies need to comply with. Now the hard part do you know what this means?
11) Let me give you an example. SOX is a regulation that came after the Enron scandal. Google it youngins. Basically publicly traded companies need to provide reasonable assurance that their numbers are not straight bullshit. That their company valuation is based on real #s.
12) How does this relate to crypto you say? Well systems that are financially significant need to go through a SOX audit. This will impact some of your favorite crypto projects. Can they comply with the regs? If they can’t they won’t even be considered.
13) Last last thing. There is this thing called 3rd party risk. Basically right now with cybersecurity being a big topic for companies they are afraid to get hacked. And they feel they are more secured if they do it themselves than hire someone else.
14) And if they do hire a third party they need to go through an assessment. To see if they are secure enough based on what the company feels secure enough means. Don’t pass the third party asessment? No adoption.
15)Think about that when u research ur favorite crypto for long term investing. Because if someone gives u a review and it starts with “well the market cap is low” tell them to stfu. This took a lot of effort. If I don’t get at least 100 likes its the last time i do this. REEE
We also saw some other projects signing partnerships with VeChain. Besides the usual suspects like Cahrenheit, Esprezzo, Totient, a couple of wallet projects (Arkane, Cobo and Trust) announced their support for the VET token. The VeChain project is seemingly content with building up its ecosystem and finding additional use cases for their technology at the moment. We will see if this is enough to turn VeChain into a leading supply chain management token on the market.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com