Why I think VeChain is "suppressing" the price of VET
Recently I have been reading lots of posts with frustrated Vechain holders saying that, "the price is of Vechain is being manipulated". Here is why I agree and here is why I think Vechain might be "suppressing" the price of their own coin:
- Vechain has nearly a hundred potential large institutional customers of Vechain and the Vthor token including the Chinese government. With transaction costs being streamlined, in my opinion, most customers will prefer to buy the Vthor token (the token produced by VET) instead of producing their own tokens to conduct transactions. This will allow companies to purchase and use the Vechain blockchain on a on demand basic. With that being said Vechain will need...
- A LOT of nodes! Vechain's marketing and incentives (X-node, raffles, etc) have been congruent with producing as many nodes possible. Not only do a large amount of nodes help secure the Vechain blockchain, but they also help increase TPS (transactions per second). More importantly for node investors, the nodes will also produce a A LOT of Vthor which will be needed to sell to to the customers. Which leads me into...
- Vechain has to ensure that Vechain is affordable enough so people actually participate in these incentives and buy nodes to secure the blockchain and produce Vthor. It does Vechain's blockchain and long-term business model no good to horde their own token and wait for the price to appreciate. For Vechain's blockchain to work on release and be as high performance as possible for eager customers they need nodes.
So yes, I think Vechain is "suppressing" the price of their coin. But overall, I think its because they want to sell as many nodes as possible. If you think about it they are essentially selling us nodes for dirt cheap so they can secure their own blockchain and increase functionality. Its really a win-win for them and a win-win for us.
In conclusion, the price of VET will be "supressed" until Vechain has a satisfactory number of nodes.
~In my opinion, hold your node, produce VTH and look for a high demand of VTH once Vechain starts rolling out. VET will slowly start to appreciate as people realize the profitability of VTH and who knows what the price of VTH will actually be. We don't know yet what that demand is going to look like. I will leave you with a tweet by Sunny Lu of Vechain.~
Take some time to absorb the info, your patience will pay off https://t.co/qQglrCH5ys
— Sunny “No-Any-Promotion-Link” LU (@sunshinelu24) July 17, 2018