The VeChain (VEN) project has unveiled a new project, dubbed Cahrenheit, which is a blockchain-based automotive ecosystem based on the VeThor blockchain. The VeChain Foundation participated in a closed funding round for the project, thus becoming both a technical and a financial backer. The Cahrenheit project aims to provide a decentralized searchable store of information for clients and enterprises, to achieve the free flow of information in the car industry.
“I am extremely excited to be working with Cahrenheit to further develop VeChain’s already strong presence within the automotive industry though its partnership with BMW and Renault (PA:RENA),” said the founder and CEO of VeChain, Sunny Lu.
However, the recent successful new blockchain launch and the release of a mobile wallet did little to stem the sudden drop in VEN prices. Just as VEN rose against the market in past months, recently, the coin lost its backers. Despite the strong community, when it comes to trading, volumes have dwindled.
Some see the price of VEN as going through a freefall, possibly dropping much lower before any signs of recovery. VEN continued to slide ahead of the weekend, falling to as low as $1.61 on Friday in a continued unraveling in the past week. The prices below $2 caused panic and expanded the selling.
One possible explanation for the slide in VeChain prices was that after July 1, the requirement to hold onto 6,000 VEN to qualify for X Node Status was removed. So, owners of X Node status were satisfied that their node status was secured, and went on to trade their assets.
The question remains how many X Node holders would buy back the VEN coins in order to start staking them and receive rewards.
The other reason for the selling is that the token swap had a rather long deadline, and the new blockchain, launched on July 1, is not handling transactions or giving rewards. Users have observed that there are no new tokens to run on that network. Analyst Jackson Rockwood further mentioned in his recent blog that those who expected immediate staking and rewards were disappointed, leading to selling.
Until recently, the VEN market price was supported precisely because a large section of the token supply was locked away. Still, VEN is seen as one of the potentially growing projects, which could lead to a price increase in the longer run.
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