Vechain de A à Z : Analyse, histoire, opportunité crypto. Bientôt l’explosion ?

Hi Profitable Team.
Here Yann Darwin. Welcome to the
personal finance and investing channel. Today we are in the crypto playlist. I will tell you the story from A to Z of VeChain, the VeChain project, its founder,
what happened, why is it interesting as a project,
is it interesting to invest, what are the points strengths
and weaknesses? Here is the goal of today's video. I'll try to brush you
through the whole story from the start and just before we start,
an important point to understand I am not a financial advisor,
I am not an investment professional I act as an enlightened individual ,
enlightened investor, my goal here is not to make you stupid, my goal here is not to be like Uncle Jean-Pierre
at the half-drunk family meal and say "Invest in this, don't worry, think -me".

It's quite the opposite. My fight is financial education, it is to do the work
that we did not have at school. My goal is to pass it on
and understand what we're doing. This video explains the project,
it explains the crypto behind it, it explains the technology
and strengths, but it is by no means
investment advice, it will simply
save you time on your research, to eventually make
money on your research, and please do
n't be silly to say "The last one who spoke rightly, he said
VeChain was cool so I'm going to invest in it" Invest in it if you think
it's interesting for you to invest in it, weigh the pros and cons
and especially on the occasion no all-in, no completely stupid thing, we have already seen that in enough videos.

What is VeChain? This is the guy
who has a good head , guys in cryptos
often have good heads. It's Sunny Lu, a Chinese. Sunny Lu, the founder of the VeChain project. The story of this guy is quite interesting because it starts from the corporate world. This guy had a career in corporate,
a bit of a good student, he studied at the University of Shanghai. He had a bachelor's degree in Electronics,
Communication and Engineering, therefore electronic communications engineer. He started working
for Netstar, an IT company. He comes back to do IT. At
the very beginning of his career, he developed stolen vehicle tracking solutions with this box. In particular, they had
a large market in South Africa, where they were developing solutions
to find stolen vehicles to return them to their owners,
to help the police, law enforcement etc. If I'm telling this,
it's not for nothing, it's because it will be reused later.

After Netstar, he went to 3M. 3M, brand that everyone knows,
multinational, 3M China. He did IT in this company,
after he made a stint at Bacardi, and then later,
he arrives at Louis Vuitton. This is extremely important because a lot of things will flow in his head and for the future of Vechain. At Louis Vuitton, which I do not present, he is CIO, Chief Information Officer,
the father of IT.

It's the geek daddy who is the biggest geek
with an army of geek around him. He manages teams to develop Louis Vuitton China information systems. He becomes aware of
everything that revolves around this brand and the problems that affect
many luxury brands, in particular Vuitton,
which is counterfeit. When you sell bags for thousands of euros,
it's easy, especially in China, to find a small manufacturer
who will be able to make them cheaper, stick Louis Vuitton on them
and sell them for less. He becomes aware
of these business issues, and in 2013,
something changes his life, and will change his life,
he does not know it yet. At Louis Vuitton, he
attended a tech seminar for IT and discovered blockchain technology. He discovers via the speakers
and the interventions, what the blockchain is, what is its
intrinsic and deep functioning, how can it
function in security, how can it function
as a system which allows to
bring trust between several actors, how can it operate
in a decentralized manner. It changes his view of the world,
he becomes extremely inspired. In the process,
he will found BitSE.

He was traumatized by the blockchain, they found this with partners, they want to
set up blockchain solutions etc. Initially, they earn money
especially with mining. Why?
We are in 2013-2014 at this point, we are more towards the beginning
of Bitcoin in the timeline. In terms of mining difficulties,
at the level of miners, there are not all the pools
that we know now, it is much less structured,
even if in China it is already hitting hard, so they decide to start fund
on mining with this box, to already enter flows,
to bring in money and to allow them to develop
what will become VeChain. But VeChain still does not exist,
they are mining, and they are mining so much, that
they arrive at 5% of the world supply.

They are the ones who mine 5%
of new blocks worldwide. This box is therefore a little bit
beefy in the blockchain ecosystem. It allows them to make money
, absorb their costs, and develop VeChain. You should know that he does this in parallel
with his work at Vuitton. He is still CIO of Vuitton, he is developing BitSE,
he is starting to work on VeChain, he is increasing to 5% of the
world's mining capacity. In 2015, VeChain is ready,
officially launched in Singapore and there, he wants to leave Vuitton to
devote himself 100% to the VeChain project. He leaves Vuitton and becomes
full-time CEO of VeChain. We're not talking about VET yet,
because now when we talk about VeChain, we have the VET token,
but at the time we were talking about VEN. If you do some research on VET,
you will see that by looking for the history, it does not go back to those years,
to 2015-2016, because at the time it was called VEN.

We will see later in the story
that it has been rebranded, that it has had changes. Why is it called VEN at the time? Because it is, for the moment,
on the Ethereum blockchain like many other cryptos, in
particular the DeFi which is often talked about, it uses the Ethereum blockchain
to operate. The token is launched,
it is called VEN, what interests us is to understand,
VEN at the time and VET now , what is it? How it works? What does it do? There are 2 main goals
for this project and this blockchain. First, it is to do all that is tracking and then, all that is trust service,
trusted third party.

The tracking side and the trust side
are the two main axes that this project
and this blockchain will develop. Here are some examples,
there are 7, 8, 9 great cases where we will understand the business interest and we have seen it with XRP and Ripple
and we will perhaps see it with other cryptos, if this format of " Father Castor tell me a story "
of crypto from A to Z interests you, you can tell me in the comments,
I will do new projects. The projects that interest me the most are the projects
that have a business interest in the real world, if we take Bitcoin for example
there is not too much business interest, Yes it is the first, yes it is the king,
yes it's the biggest, yes it's a store of value,
yes we are talking about digital gold, but it does not have an
immediate impact on the world, as VeChain can have
with the examples that I will give you.

The first example is on the
trusted third party side and on the retail side. We will say that added value 1,
on everything retail, retail sales, and that came to him at Vuitton. VeChain as they are smart,
and they are very attached to the real world, they manage to set up partnerships. They have a partnership with LVMH,
Louis Vuitton Moët Hennessy which is the group that
owns dozens of brands including Louis Vuitton. What does this partnership with LVMH do? We take the bags.
The first were the Givenchy bags. The problem with Givenchy is that it's very expensive,
we have counterfeit problems. Inside these bags we put RFID chips , tag systems
that can be scanned with an iPhone, with any
RFID-compatible device. This chip, this tag will follow
the product from the start of its design, at the raw materials stage,
at the factory stage until the end consumer
and beyond the end consumer, on any resales,
on any after-sales service, repairs etc. We will be able to follow,
anchored in the blockchain, therefore secure everything we know,
secure a falsifiable, the entire life of a product.

On a bag, one can
wonder where the raw materials come from, who is the seamstress
who assembled the thing by hand, when was it made,
on what date, how it was transported,
in which store it happened, who bought it, etc. For example on a resale,
'have bought a Givenchy bag, I don't want it anymore,
in 2 years I'll be selling it to you, the question that always comes up
"is it a real Givenchy bag or not?" By scanning the tag with your phone, you connect directly
via the blockchain to the interface of LVMH, so the brand's group
which will tell you whether this bag is real or not. See even if there are no tags in the bag,
this bag is not real.

We have the tracking and tracking side
and the confidence shooting side. These are solutions put in place,
very well explained on their site, as usual,
I will put all the links to you. It's in place it's official, it's effective, there are partnerships
that are already in place, and there is also a non-exhaustive list
of all the partnerships, and we see that LVMH is there,
d '' other major retail players are there, there are a lot of Chinese players
that we know less about but there are players that we know well
like Higher, there are players that we know well like H&M, who are partners of
this blockchain and their products, It is well explained here,
I will show you a diagram where we realize that the whole idea is to go from the creation of the product
to the loss management , when we are going to transport it,
can the product be lost, can it be
stolen by an intermediary, we will track the transport,
we will track it in the store, we can track in how many time
it is sold, is it sold, not sold,
is there a surplus, no surplus, how long is
left in stock.

We will then be able to
track interactions with the customer does the customer check
if the product is not counterfeit, does he resell to successive customers
who themselves will check we also have all the service afterwards? -sale. If the product returns to the factory
because the strap of the bag has broken, we will be able to anchor it all in the blockchain and say on such and such a date
the product was sold 2 years ago, it returned to the store,
the strap is broken, it is the original product,
it was not falsified … and we could go down very micro, for example on a luxury product, we could even put
several tags in the product to say for example the handle of the bag
matches with the bag, it matches with the zipper, etc. For a bag,
it is not necessarily interesting, but for expensive products,
it could be more interesting. It could be more interesting
for my second example, which is also something in place
now via partnerships, and we have it in the list
of partners a little higher, you may have seen Renault and BMW go by, I don't will not describe who Renault and BMW are,
two key partners for VeChain.

The automobile is the same thing. We need to follow the product,
to track it down and also to have confidence
in what is going on. For example, for a car,
we have the diagrams that explain it, at the top, we indeed have
a production line with the vehicle that will be
connected with tags. My example of having multiple tags
in a vehicle makes sense. We can have a tag on the engine
and a tag on the body, a tag on this or that part
which is important to know if they have been
switched between vehicles, to know if they have been
changed, repaired etc. At each repair step, we will include
everything that is happening in the blockchain. Automatically at the dealership,
we scan the product, we look in the computer,
we see that we have done an oil change, an overhaul. We not only digitize
the maintenance book, but we come to allow all the people
to whom we would give access, for example when this car is resold used
and you ask for the history of the car, you scan it ,
and you have all the history, with whom it was repaired, when, why, how
, where it came from, when it was produced.

This makes it possible to follow
everything that is happening, and we have all the interesting players
in insurance, independent repairers
, manufacturers, but beyond that, the banks
which will make loans, which will guarantee this,
insurance experts etc. All these people will be able to
interact via the blockchain and via this
digitized and tamper -proof history of the history of the vehicle from A to Z. 2nd extremely interesting example
of the application of VeChain. A third example on the tracking side
and on the trust side is agriculture. What have they done with agriculture? They explain it here.
What is agriculture? It is producing products,
and taking them to the end consumer and if possible we would like to
have confidence in where it comes from, why, how, when it was produced,
was it mixed, is it ? what has been transformed,
were there pesticides or not etc.

It's still interesting. We also have a problem in agriculture,
the heterogeneity of foodstuffs. For example to make flour, grain
, wheat can come from 30 different farms. You end up with your flour
and you don't know where it comes from. Being able to tag
all these farms, all these different flours,
all these product qualities, and either on a final product, the flour alone, or on the multitude of ingredients
contributing to a final product, we will also be able to do everything. track down
and it is already in place. For example,
I found a funny anecdote in Italy. We follow tomatoes, because Italian tomatoes
are like certain French products, they are PDO,
they are a guarantee of quality, etc. These tomatoes are tagged directly
at the producer via the VeChain Blockchain, and we know from a secure and tamper-proof source
where they come from, when they were harvested,
why, how, and if possibly
they end up in a finished product, we are able to track him down as well.

Some partners have partners
in tea, on tomatoes etc. The entire product life cycle can be tracked,
but beyond the producer. The producer can be tracked but also
all the logistics to the store , sales, consumers
and even connected objects. We could think about tomorrow and we have already
talked a lot about connected objects. When I have more tomatoes in the fridge,
I ask my fridge to recommend tomatoes and if it can also verify that they come
from the same producer as the last time, and that it is the variety of tomatoes
that I 'like.

It could also be interesting. We finally come to interconnect,
and that's the beauty of blockchain, and this project in question
, beyond simply blockchain, we come to interconnect real life via secure
and tamper-proof interfaces with the blockchain. We also have the example of logistics that
they explain on the site. What is the logistics problem? Logistics is a science,
it's very complicated. The science and the beauty of logistics is to move food
from point A to point B, and possibly store it, but pick it up
at the right time in the right storage to send it as quickly as possible.
possible to customers. We also have problems
that pile up on top of it, with transport costs
, fluctuations in the prices of raw materials, the cold chain for products
that require the cold chain.

The proposition
regarding VeChain's logistics is to digitize all this
with tags anchored in the blockchain and which make it possible to follow absolutely everything, from transport times to potential thefts,
to potential breaks in the cold chain, because that it will suffice to compare. If a refrigerated truck is tagged
and the packages have a tag that allows you to know when they enter the truck,
when they leave etc. We can follow the cold chain. There are other examples on energies. They have a partnership
with a company that makes gas, to track where the gas comes from,
what is its quality, are there any leaks or not,
how is it monitored, how it is consumed,
at what speed, and all the fluctuations,
all the external factors that there may be if we consume more
when it is cold, by how much, what is the impact of these
external factors, the climatic conditions etc.

We also have all the carbon part. They have an interesting partnership
with an automobile manufacturer in China that we do not know in Europe, but which is important in China, which is one of the largest in the world. This manufacturer's mission is
to lower carbon emissions, and there is a system of carbon credits , companies that behave well
are entitled to carbon credits and companies that behave badly
must buy carbon credits, a kind of reverse tax where if I pollute, I have to buy carbon credits
to compensate for the pollution, if I lower my pollution, I receive carbon credits
which I can resell in exchange for money.

It is a system that compensates itself. Those who pollute less and less
receive carbon credits, and therefore money, and those who pollute too
much will pay more and more. which encourages them to pollute less
and to receive carbon credits. So much for the economy of carbon credits and thanks to this blockchain, they track down the cars
in question, hybrid or electric, etc., we track the entire manufacturing process
and also the cars on the road to find out their speed,
why they consume etc. All of this goes into the blockchain,
and in real or near real time, we are able to give carbon credits
or remove them or make them pay again via this blockchain.

The last 2 examples
already exist in the real world, but are digitized,
faster and perhaps more secure, and their goal is not to be the best
and the only one on all these verticals, because all the examples that I gave you
could exist otherwise elsewhere, but what makes the strength of this project is to put everything together
in a large toolbox and we will see it after being able
to offer it to turnkey companies. There are 2 examples left: the digitization of content. We talked about this with examples
on the Internet of Value, when a music or film producer
is going to get paid live, they have copyright protection applications,
to be able to track a copyright, is- what it is used or not, therefore to do tracking
and payment flows. On the filing of electronic documents as we can see
with many other applications on the internet, we can sign online, it is secure
and it is sent to everyone.

They do it the same way. Except that what is beautiful
and what I like about this project, which makes me say that
they are strong, is that each time,
they have super interesting partnerships. We talked about logistics,
they are partners with Kuehne + Nagel, who are completely unknown
to ordinary people but I don't imagine people
in logistics, when you do research on them,
you realize that they are massive . You have 109 companies
and 75,000 employees, 15% of the world's freight
that goes by air or by sea. They are partners with them,
they are partners with the Chinese government. We were talking about digitizing
the signature process, they are partners with
Price Waterhouse Cooper, PWC, which is one of the big four, a very large one in auditing
, accounting, legal services, etc.

The list of partners
is quite mind-blowing. There is also Walmart,
I did not mention it on retail. Walmart is not a small brand
and neither is Walmart China. H&M and so on. What is lacking in
many blockchain projects is to be able to connect an idea,
a white paper, a great vision to partners, business applications
in the real world that is often lacking. The rest of the story.
There I explained to you until 2014/2015, launch of the project, Ethereum,
I made a small detour through the partners, but between the two,
things have happened so that we are also advanced today 'hui
in terms of partners.

I will resume my story. At the beginning of 2018, well after the launch,
I do it in accelerated mode, but I reassure you,
they struggled, it took a while. I'm shooting the video in early 2021, and not all of these partners
arrived at the launch in 2015-2016. At the beginning of 2018, they set up their rebranding, that is to say that they had already planned for X time
to get out of the Ethereum blockchain, for many concerns
of congestion, speed, costs, and also for their vision and
how the blockchain works, which I will explain to you later. At the beginning of 2018, the photo made me laugh
so I put it on, they are making their big
official blockchain launch, and they are leaving the Ethereum blockchain. They launch the VeChain Thor blockchain. Why they called it Thor
and why they took a hammer, I don't know, they are Chinese, maybe it's
in the culture, it was their delirium, why not. The VEN token at the time is no longer based
on the Ethereum blockchain but switches to the new blockchain,
the VeChain Thor, and the token will be rebranded,
no longer VEN as at the beginning, but VET.

So when you look up the history of VET,
it starts on that date. The token is rebranded VET,
we also decide to multiply the supply by 100. Why? We also saw it
on the XRP Ripple video, the more important the supply is for
very large business applications like this one, where we are talking about making partnerships
with the largest companies in the world etc. The more we have a significant supply, the
more we will be able to use tokens that will have a real utility in life without moving prices too much
because that scares these companies; it is better to have a quiet
and gradual increase than price explosions even if history shows us that a
larger supply also manages to explode and we need a lot of supply
to be able to serve everyone if we look at the project , the big picture
over time, in 5/10 years, when you set up this kind of project
it's what you look at 5, 10, 20 years, and you do the calculations,
you realize that you have to an important supply. So they decide to
multiply the supply by 100, but they don't do any dilution
or anything, they increase the supply by 100,
they divide the price by 100, they allow people who had one
to end up with 100 with the switch.

No one is harmed, it is a multiplier
that is set up, a split price as we will do
on the stock market when we divide the share price
by four because it is too high. Why are they doing this? Because they foresee everything
that will happen afterwards and everything that has led
to these many partnerships. Switching to their own
blockchain will allow them to apply the fees they want, to have their own white paper with their vision,
to change the protocol because we know the problems
of the Ethereum protocol. It will also allow them to implement
two great revolutions.

The first is going to be the two token system
which I will talk about now. The second will be the notion of BaaS
instead of SaaS which I will talk about later. First thing, let's take a look
at the two-token system. Their blockchain implementation is
going to allow them to make a change on something they might not find
interesting on the Ethereum blockchain. We are going to create two tokens: the VET, we are not really going to create it since we have seen that it is
a kind of split price x100 of the VEN, we multiply the supply by 100, we allow people to switch,
the VEN disappear and they have VETs. The VET is the utility token of the blockchain, it is it that will allow
value to be stored. Like any crypto,
it is a store of value that allows you to finance things
, activities etc. I will go further in my explanation and create a second token which is
also attached to this blockchain, the VTHO or the Thor, its real name. Again, they chose it like this. The VTHO, the Thor or the VeThor.

This token will work a bit
like gas works on Ethereum. That is to say that to
pay the transaction fees, we are not going to pay them in VET, in dollars,
in fractions of VET, we are going to pay them in VTHO. Why? It's super smart. Their goal is to say that the VET is
going to be used to store value and the VET is going to be used
with a second big vision: when it is held,
therefore stacked and not moving, it produces VTHO. Much like a farm would produce milk
or a tree would produce fruit. When VET is stored,
it produces VTHO. It therefore has a yield. Slowly , every day,
a VET produces 0.000432 VTHO. The more VET you hold, the
more VTHO is produced, because you don't touch
these VETs, you stack them. What will it allow? Put yourself in the place
of a company like LVMH, which will set up more
tracking and trust systems, as we have seen with bags,
for example the Givenchy bag, and tomorrow it may be

Vuitton shoes etc., and more and more products. To pay for transactions,
we do not use the VET, we use the VTHO. That is to say that at each micro checkpoint
where I come to scan the RFID chip, I retain the manufacturing, then it leaves the factory,
then in the truck, then the customer, then the customer scans
because he wants to know what happened, then the customer sells it so
the person who buys scans etc. At each of these points of use
of the blockchain, we come to use VTHO. And we come to burn some VTHO. Because we come to pay with VTHO.

Now there are two big solutions. I am LVMH, I have three main solutions. 1: I buy the VTHO. Because I have to use this blockchain,
so I buy it. The VTHO, although it is not expensive,
it may cost me dearly over time. Either I buy VET. If I buy VET,
I produce my own VTHO, Finally, I spend a little at the beginning,
like buying a factory, but afterwards I can produce,
like a factory. The factory may not be a good example
because I will need raw materials etc. As if I bought
a building, for example. I buy a building, it costs me dearly at the start,
but then I have tenants who pay. So I have a return, even if we will
remove taxes, repairs, etc. It's a bit the same idea. I buy VET.
My VET is going to produce VTHO for me, and whatever I'm going to do,
it's going to be free.

Or a mix of the two. I will have a little VET
and on peaks of use for example, or what I have not planned,
I will buy a little VTHO, the time to buy VET etc. Here is the whole business model of this company, which is not structured
like a company, as we had seen
for Ripple for example, but it is structured like a foundation. VeChain is a foundation. There is still a big difference
between a company and a foundation, the company is there to do business,
to make money, and will eventually be able to pay its shareholders
and then make a lot of money. A foundation is there
to set up a service , perhaps bringing good, the best
for society, for a class of people,
for animals etc. A foundation needs to be profitable in order
to be able to continue to operate, to be able to bring in money
and then spend it again, to invest and to grow its teams because a foundation is generally
structured like a business. A foundation that grows
will hire people and so on. But its end goal is not profit at all costs.
Its end goal is not the shareholders.

It's a real difference between the two. This side, we will see later,
structured like a company, but it is a foundation with a
very smart business model, I find that smart. Now that we have understood
this token ecosystem, I quickly talk about
how the blockchain works, it is not a proof of work
as Bitcoin can be, we have seen that it consumes a
lot of electricity, that it was very polluting,
that it was slow and expensive, It is not a Proof of Stake as Ethereum will become
tomorrow but is not yet, but as many other
blockchains are, where everything is needed stacker price, and it is therefore the richest
who validate the transactions. This is yet
another another consensus system called PoA,
Proof of Authority, which looks a lot like what can happen
with XRP, with consensus, where overall we are going to give everyone
an equal chance. validators
to find the next block, via a sort of draw,
there is an equal number of chances, whoever validates receives a fee.

All these validators are
connected to each other, and depending on their involvement
in the whole system and the blockchain, and depending on how much VET they hold, they are incentivized to hold VET
and to hold millions, tens of millions. Depending on how much they have,
they have more or less voting rights. On the other hand, it is not proportional. We will see the white paper quickly just after, it is not proportional to say you hold 90% more than the others so you will have 90% of the voting rights. There are ratchet effects
but all this is intelligently calculated so that no one holds
the majority of the voting rights and that there is necessarily a consensus
that is put in place to accept any changes and we will talk about it later
in the events that happened. I resume my story. The two-token system,
the change to the VeChain Thor blockchain, the implementation of the VET
and the implementation of the VTHO.

We finally understood how it works.
But how do they make money? Because I say it's a foundation
but it's not a private business, so they're not there
to make money, but a foundation
needs money to run, to hire people,
to continue chaining etc. So how do they make money? There are major axes. The first major axis is
the sale of the VETs they hold. We know it quite simply, that's
why I like all these blockchains and all these projects that are structured
like companies, is that like a company, they publish their financial reports
and their quarterly reports. We can follow exactly what's going on
and it's all very transparent. Here we have the last one that was published,
and with each report, we see the state of the supply,
what is happening, how, why. Like any crypto project launch,
they kept some of it for themselves.

We have the co-founders
who have about 5% of the supply, it is not written
but I will explain why later. But we also have a business development part,
a reserve part of ecosystems that will be used to develop the ecosystem. They are going to sell some of their
VET to the companies we saw before, LVMH etc who want to use aid
to store value and who want to use the VET
to make VTHO. It is therefore the first axis of performance that allows them to earn money
and absorb their costs. It is a very immediate axis because
even if it will not be tomorrow, it is the time to launch the machine,
to set up partnerships. The second axis that they put forward
in their report is asset management. Because by selling everything we saw above,
they still make money. With the VET when we have companies
like LVMH etc, we bring in money. With this money, they are smart, they
do asset management and investment, and it earns them interest which
allows them to cover a large part of their costs. The third axis is the famous BaaS,
it's very smart.

We know SaaS,
Software as a Service, which are software
allowing to be very flexible and to set up
your organization in your company and which adapts to each company etc. They created the same thing with the blockchain:
the BaaS, Blockchain as a Service. They said to themselves: We have partnerships, we want to put things in place,
we have plenty of ideas that are smart, all of that can be very interconnected, but wouldn't it be smart to allow
anyone, any company to either plug into our own blockchain
and use what we already offer or either plug
into our own blockchain in part or in whole
or even not at all, to make their own blockchain
with their involvement. Because we haven't thought of everything. It turns out, tomorrow
Airbus will want to work with us on something very specific, for example being able to follow
the constraints on the planes. When planes are flying, there is turbulence
and mechanical constraints and we want to follow them to see
if there are any microcracks etc.

Ideas that come out of nowhere
but it could be an example. They said to themselves for
all these future customers, we are going to create the BaaS,
Blockchain as a Service, they did it, and they simply
allow any company wishing to work with them to plug in in full, in part,
or not at all to their blockchain and to use in whole, in part,
or not at all their services, the VTHO, the VET etc. It's super smart
because it makes money. When you do turnkey solutions
for companies, and you allow them
to follow exactly what they want, why, how,
their supply chain, their logistics , sales, interaction with their customers
, after-sales service etc., it costs money,
and therefore it is a major source of income. So this is their third income stream. And that's all. I come to make the parenthesis on the team, since we saw it, they had 5% of the supply
as full of blockchain projects. What did they do with these 5% of the supply? Why does it not appear on the reports? It's very simple, it actually appears
just below. There is a team lock up in place
and it's super cool because when they made the switch between the old blockchain and the new one,
between the VEN and the VET, they gave 5% of the supply to the VET founders, these founders have committed themselves
in the white paper to block this supply and not to sell it, not to trade it
and not to enrich themselves personally with it.

there is a quarterly, they re-commit to continue blocking
their supply and not selling it, it's cryptographically blocked,
as usual, smart contract
in a blockchain ledger. It's cool since we are talking about 5% of the
supply being blocked, we are talking about 3 billion VET. It shows the commitment
to the success of the project and the foundation. This is an interesting point for me,
and another point which may be of importance; In 2018, we saw what happened,
crash, explosion etc. At the time the VET was
among all the cryptos, the whole ecosystem exploded,
rose to the top, bullrun etc, and after, the bellows fell in 2018. We realize that at the time the VET
has less underperformed than the others, when the others made -80%, the VET over certain
periods managed to gain value and others to make -60 of the -20 … It survived better, and I found
some articles from the time, "There is only one survivor it's VeChain" "There are two survivors, it's VeChain and BNB" at the time. It was a crypto that survived
the previous bear market well, we are more and more
in a bull market situation, we do not know how far it will go, it comforts me on the fact
that it is interesting, even if the past does not prejudge the future.

Another strong point that I put aside, all the white paper is available in link. We're not going to study it in full
because it's still pretty geeky, but if you're interested in the project,
it can be interesting. There is the governance part
which is very interesting where they explain that even if it is a foundation, they are really structured like a company. Today there are people, employees
and it is something quite solid. There are clever moves that I want to salute,
like this one, they get more and more involved politically, it's up
to you to decide whether it's good or not. They joined the China Animal
Health and Food Safety, Alliance CAFA, when we look at the other boxes
that are inside, we see that there are partners like Walmart, or no partners yet
but interesting boxes like McDonald's and all of them. Chinese boxes that we do not know
but which are all extremely massive. We see IBM here that we know better, and if you research the size
of this device and the boxes inside, it's interesting.

They are also partners with the Chinese government, it's either good or bad,
but these are clever moves because today to do
something relatively big, it's easier to be a partner
with the government, especially in China. So much for everything that is
vision of the project, positive points. Now let's see the weak points,
since everything is not all rosy in life, all projects have weak points
or unknown points. The first big and easy to find
when researching VeChain, and maybe a point of concern
that comes out early on, is the hack business.

On December 13, 2019,
there was a VeChain hack. It means everything and nothing. Because we say there was a hack
of this or that project, this or that crypto, we never know if it is a fault
on the blockchain, which is very serious. If it is a defect of a wallet
which has been hacked, but which comes from a
code defect or a human error, etc. There are plenty of possibilities behind the word hack.
A hack doesn't mean anything. There may be 10,000 entry points,
some severe and some less severe. The history of the hack, we had the press
which made the cabbage fat of this history, one speaks nevertheless of
almost 7 million dollars, the history of this hack,
it is a human error. VeChain, at the time,
was buying back. The same thing that
companies on the stock market can do, that is to say that for a company on the stock market,
we will buy back part of the shares to reduce the number of shares in circulation.

VeChain at the time was buying back VET to get more VET
to incentivize people to whom they were buying back since he was getting cash,
to make more VTHO. There are plenty of reasons
to buy back, but overall it gives
investors a good image, it makes them want to continue and there had to be arrangements with
some of the big partners we saw. They were buying back. There was a special wallet.
On the blockchain, there are always wallets. There was a special buy back wallet. The person in charge of this
wallet made a mistake, did not follow the procedures
that were in place , perhaps created a password that was too simple , perhaps put his recovery key
in a place where he been hacked on his computer,
or photographed etc.

In short, a hacker managed to steal the wallet. He did not break into the blockchain,
the blockchain was not broken, there was no attack 51
or stuff that you can see sometimes, it's a wallet theft. This is serious, it is a major security flaw and in particular we are talking about a box
that holds billions of VETs so it would be good for it to pay attention
to its security protocols. There were a lot of decisions
that were taken as a result. The first is the resignation
of the CFO, the Chief Financial Officer, he is the one who manages
everything that is finance, and who has in his spectrum
the management of these buybacks, the management of finances, the management of wallets,
the management of the various bank accounts etc. therefore resignation. At the same time, they contacted
all the exchanges to give all the addresses
that had been hacked.

There was not only one address,
since once the wallet was stung, the hacker was smart,
he balanced all the VETs on 469 addresses, which were subsequently found since
the blockchain is transparent , everything is traced, we are able to
say where it started, where it happened. So he sent that
to 469 addresses, they contacted all the exchanges,
gave the address codes so that these addresses were blocked,
that they could not make sales, they
found three quarters of the tokens, 727 million tokens
on the 1.1 billion that had been stolen.

The hacker has had time
to make sales. From there, which they did
and it appeared also at the time, the CFO left, they launched
an update on the blockchain, since the blockchain
is a computer program and a computer program
can and require updates. So there, I'm not reminding you of the principle of validators,
the principle of consensus etc, but they sent an update
on the network asking all the actors of the network, so the nodes, the masternodes, the validators, that is, is like many other blockchains, there are nodes which are
more or less large , depending on their interactions,
the number of coins they have stacked and their size,
they have voting rights.

They sent this update, and asked to vote on what
they proposed on this update, to block cryptographically, because it is not possible to block
these coins, these addresses on any blockchain. . It was not planned at the beginning. But since there was a hack,
they told people to vote to be blocked , not just the exchanges that block them,
but that they be frozen. The vote was yes, they froze
these tokens which were found, well the large part of these tokens
which were found. There was a second vote
which was sent later, everything was done very quickly,
in 2 weeks, it was settled. Blockchain update, revote
and now that they're stuck, they've been asked if they
're okay with burning them down completely. We are not going to leave them stranded for life,
they have been stolen, loss of confidence. We burn them, they disappear,
we remove them from the blockchain. We are therefore going to lower the supply a little,
but not too much either. It was voted yes
so these tokens were completely burnt.

It was rather well managed, after like any business,
any big project because we understood that
it is a foundation that respects itself. Then the CEO, Sunny, said he was going to cut
his salary by 50% for the next year, given the fault, it's well managed,
in terms of communication. He therefore lowered his salary by 50%
and we realize that the course reacted rather well, that is to say that even the day after
the hack we did -11%, which is not very important
compared to other courts in general, it varies a lot
in the crypto market. In the medium term, we were
more at about a 5% drop, since they were able to manage well. It shows that to err is human but that they have been able to anticipate
and reason like a business. It reassures me too. 2nd negative point for me
, maybe more important than the 1st, which is my big negative point. There is a lack of figures on partnerships. We are told
of LVMH, BMW, etc. partnerships. We've seen them all here,
all the big boxes. The list is a bit old,
there have been new announcements since.

Partnerships are announced to us
but we do not have precise figures, on what volumes, what products are considered by these partners, what do they do, how,
how much does it cost them, how much VTHO ? We lack numbers. There is noise, there are rumors,
but there are no consolidated, clean figures etc. I would like more vision on this,
even if in the quarterly there are a few but we do not manage, as we
could with a company listed on the stock exchange, to realize what is really going on. . We know that things are happening,
we realize that it works, we realize
that brands are interested, but we do not
realize how much. So it's hard to say
that it will explode tomorrow, it's the best project in the world,
it is clearly undervalued, or on the contrary,
it is already well priced.

When you invest in an asset,
it's very important to tell yourself that it is undervalued,
so I believe in it and I invest, or else I anticipate that it will increase
because I see that there are stuff. We can anticipate that it goes up because we believe
in the partnerships, the super ecosystem, but we cannot say by A + B, they come in so much so the box is worth so much,
so the market does not have it yet. pricé. It's a lot of anticipation, a
lot of speculation and not a lot of accounting reality. It bothers me a little, and the last point of concern
is the price of the VTHO. Today the price of VTHO is low,
it is quoted, you can find it very easily. At the time of shooting this video,
the VET is 0.046, the VTHO is 0.0048
so it's a lot cheaper. We can still see that
the VET curve looks like this, like
all crypto globally at the moment.

The VTHO curve looks like this,
we see that it is volatile, since we are on low prices,
I imagine that there is not only use, we would not be in bullrun periods, I will see him do that I would say to myself: everyone wants VET, VTHO
, companies buy it because partnerships are
becoming more and more important. But here we are in a period of bullrun, and we are in a period
of increasingly stupid market. So, are these not beginners
who have not understood well, who see marked VTHO 0.048 who think that this crypto
will explode like the others. The psychological effect
where we see that it has exploded, little pullback there on
interesting fibo levels, we say to ourselves that it will start to rise again
so we buy.

Typically speculation
, not usage. So this is my point of attention. What is going on with this VTHO? Unfortunately, I think we are
purely in the speculation, but would
n't there be a little use. It is very difficult to know. We can't count on saying,
we burned so much VTHO , companies use so much VTHO. There is also the possibility that all people
who hold VET, have VTHO , VTHO starts to be listed
on more and more exchanges, especially Binance.

So if we got free VTHO
and that's what everyone would say, if I have X VET and it's been 6, 8 months, 1, 2 years
since I got them, I've already got so many VTHO. Free money, I look at how much it's worth,
it's 500 euros, so I sell them. We do not know exactly what is going on. Now let's talk about the future, since it is still
something important. What will happen in the future , what can we think? There are some future points for me. The first is that we do not buy
from a vertical market. If following this video you have the fomo to tell you
I'm going to buy VET, it's a bit complicated, because the accumulation period was more
in the past, around here, not too vertical. At the 1st break out, volume, return to the pivot,
there was a second super period, 2nd break out, volume, correction, consolidation,
a fine figure of consolidation here possibly, but there it is hard to buy. There we have a nice feedback on the 0.38 fibo,
a continuation figure here, there was possibly
an interesting buying level there.

Now come in right away,
if it was me and I didn't have a VET, I have a fund of course,
I have to disclose what I have is important, I am an investor in the VET, I have since after the previous bull run,
I never sold it. There if I had to buy now,
or strengthen myself now, I do not find that we are
in a superb location. After the notice, it's always a matter of allocation and if you tell me, I'm a gain, it depends. If you tell me I'm new to crypto, all in VTHO
at a location that is not super optimal, I'm telling you no. If you tell me, I have been
in cryptos for 1 or 2 years, I am at +100, 120, 200, 50, 60% whatever
I am very largely positive, I started to take gains
and I plans to put 2, 5, 7%, on VET, the speech is not the same.

It is a question of risk, return
, allocation, control of this risk. There will be no buy or no buy,
this video is not investment advice. I can not say more. Now there are a few more points that I like, there is this initiative which was launched recently. It is a foundation launched
by an insurance company called the RISI project, which wants to clean up the oceans
like many other boxes.

They clean the oceans, they
collect pollution, they fish for plastic and they use the VeChain blockchain
to track it all down. How much, where, how to beep,
follow behind the industry that will recycle etc. We see the guy there with his phone, there are QR codes everywhere,
there are tags, they weigh etc. This project is relatively new
which I find interesting for 2 reasons. It is ethically cool, ecological
and that it is the present. It attracts a bit of spotlight on the project
so I find it interesting. Do not forget, if I must conclude, that we are more in a weakened phase,
remain cautious, we arrive more and more in a
weakened market phase, on the other hand we are
at the time of filming at the beginning of 2021, perhaps. to be that you are in 6 months, in 1 year,
I don't know what will happen. Perhaps this
very long-term project, as we saw
with Ripple on a previous video, as we will see
on other videos with other projects and like many blockchain projects, we have has some who are going towards a real disruption,
a real change of the world and they are registered for an important period.

I think this project is taking place
over a long period of time. I think that you should not necessarily give in to the sirens of I buy right away because it will explode, I will resell and make a profit. It can also be healthy to say
to yourself for someone who would have missed, I will let this bullrun pass, I am quite invested
in cryptos, I am happy with what I have. On the other hand, in the bear market when things are going to go down, when things are going to be lateralized, this project is an example,
or any other in which I believe, I will take the opportunity to invest intelligently
like a institute, like a big one, like a whale, and I will accumulate during periods of lateralization when nothing is happening or no one believes in it to take advantage of the next explosion.

But I do not know what will happen, as
much tomorrow it is x100 000. Thank you for having followed this video, you can put me in comments,
your questions, your comments. I would like to say one important thing. The like button we did not explode, we forgot it, we made our video, we are happy, and we do not freak out at the like button. You take Thor's hammer,
the hammer we saw, and you blow the mouth of the like button
to thank me, because it's nice, it helps this channel,
it helps SEO and the little SEO comment
he makes fun too.

See you soon, the team,
the future is us..

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