VeChain Foundation Launches New Stablecoin; Will It Increase Demand for VET?
The VeChain Foundation had already begun 2022 with a potentially significant official statement. The organization did hint at the probable introduction of a new native stablecoin named VeUSD via their official Twitter account. The Foundation provided few details about this particular model but assured its supporters that it would be something particularly unique. Something that will enable them to advance VeChainThor in a variety of ways. VeUSD, the stablecoin, would be used to “unleash” DeFi functionality for the VeChain ecosystem. As per the official statement, the digital asset was created with the key principles of this ecosystem in mind: versatility, sustainability, and scalability.
VeChainThor, the blockchain, appeared to already be getting ready for this new phase of DeFi for quite some time. As previously reported by NewsBTC, this system was updated three months ago after one community vote accepted the integration of Proof-of-Authority 2.0.
As per the VeChain Foundation, the upgrade was intended to support a fresh generation of blockchain widespread adoption by mitigating any trade-offs on the consensus layer for the blockchain VeChainThor. In that context, VeUSD might be one of the 1st product lines to capitalize on the authority of this blockchain following the update. The declaration was met with joy by the VeChain community. A user known as “EffortCapital” recently suggested that the Foundation establish an algorithmic stablecoin, like LUNA, with VeThor Energy as securities.
Thus, a burning mechanism equivalent to one that was presented in Terra with the Colombus-5 upgrade will be created. This mechanism ensures that the underlying asset is already in high demand and adds to its admiration. However, not everybody in the community concurs with the Foundation’s announcement of a stablecoin. A few think VeUSD will alter the ecosystem dynamic behavior by replacing VTHO.
Some have stated unequivocally that the Foundation & the blockchain have failed to uphold their product lines. The system was used in supply chains as well as other corporate sectors, and it has hardly ever used it to create a DeFi ecosystem.
As previously stated, this method appears to have changed with the latest features, DeFi-related products, as well as the stablecoin. But besides the critics, most users appear to have interpreted the announcement positively.More information will be released by the Foundation in the coming days; until then, everything is speculative. VET is currently trading at $0.085 with a 1.95 percent loss in the last day as of press time. According to the Vet price prediction on https://www.cryptonewsz.com/forecast/vechain-vet-price-prediction/, VeChain’s potential price will hover around $0.12 throughout the year.