VeChain’s insistence that they adhere to regulatory compliance from the start looks like a good decision.
What is the greatest strength of veChain? There are many answers, but there is a consensus among the VET industry that VeChain has the most robust use case.
The importance of VeChain’s underlying technology is highlighted in an excellent Twitter thread, posted by a crypto trader. We post the entire thread here:
Serious post. This one’s for you @coincidencexbt. FA for Tech (Spoiler alert: Crypto is the startup technology company).
1) As a young frog, I gained a lot of tech experience working for Fortune 500 companies. I’ll take you behind the scenes of a big 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 regulations. 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. 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 secure 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 assessment? No adoption.
15)Think about that when you research your favorite crypto for long term investing. Because if someone gives you 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
VeChain has also signed partnerships with other projects. A few wallet projects, including Arkane, Cobo, and Trust, have announced support for VET. VeChain seems to be content for the time being with developing its ecosystem and identifying additional use cases. This will be tested to see if it is sufficient for VeChain to become a leader in supply chain tokens on the market.