One eth is worth $44,000, but only on one exchange and in only one trading pair this fine morning on July 31st 2018.
A coin with a $1.3 billion market cap, VeChain, has seen its price plunge some 100x on a token mainnet swap from Ven (VeChain) to Vet or VeChain Thor.
Its dollar price fell from around $2 to $0.02. That’s reflected in the VET/ETH trading pair where one eth costs more than $44,000 worth of VET tokens.
For bitcoin, its price is at $800,000 in the VET/BTC trading pair with considerable volumes of $10 million exchanging hands in the past 24 hours.
All of that however is a fiction, a charade, because VeChain’s token swap from ethereum’s blockchain to their own blockchain was not a one to one affair.
Instead, for some inexplicable reason they decided 1VEN equals 100 VET, thus naturally the price of VET fell 100x.
CoinMarketCap being CoinMarketCap is apparently confused. Unfortunately that confusion sometimes makes it to SEC reports where they say crypto arbitraging is not working very well.
That’s not very true. There are significant funds looking at arbitrage opportunities, but sometimes what appears like an arb opportunity isn’t, as in here, and sometime it is due to external factors, such as Binance not allowing deposits of Bitcoin Diamond.
VeChain is a project that focuses on supply chains, launching in 2016. We wrote about them at the time as they seemingly struck a deal with Kuehne & Nagel, the world’s largest freight company.
We mention in that article a press release and where that came from is not very clear, but the news tip came from VeChain. Memory recalls can be a tricky thing so we can’t with full confidence say Kuehne & Nagel had confirmed it in their own press release.
What we can with confidence recall is that once that article was published, VeChain didn’t seem to be very happy because, and details are going by memory, it was something like the deal had not been finalized or perhaps they were not ready to go public yet.
We tried latter to confirm the contents of that article still stand as we were told, but without receiving any response.
That said, Kuehne & Nagel is involved in some blockchain projects, but whether VeChain is one of them isn’t very clear because whatever press release we thought might have been on their website isn’t found any longer.
The blockchain VeChain has launched is Proof of Authority (PoA). That being a private, permissioned, blockchain where individuals with authority sign transactions, which translates to a very centralized set-up that may allow light nodes to connect in a public manner, but not take part in validation or authentication.
They had VC backing from Fenbushi Capital and some others based in China, but the very centralized set-up leaves much to be desired especially when it comes to the main point of blockchains in supply chains: public co-ordination in a trustless manner.