China-based IoT (Internet of Things) focused cryptocurrency, VeChain witnessed an overnight upsurge in the prices. As per the estimates, VeChain increased by more than 50 per cent in value in the last 24 hours.
If the analysts are to be believed, the prices of VeChain increased on the backdrop of the successful partnerships which were cracked by the team since earlier this year. Apart from this, the momentum of tokens in the international cryptocurrency market has also improved which added to the value of the digital currency.
It was reported by CCN in May itself that, a ‘Big Four’ auditor PricewaterhouseCoopers (better known as PwC) had acquired stake in VeChain. The intention of PwC was to utilize the IoT network of VeChain to serve multi-billion dollar clients and conglomerates that rely on its services.
Expressing his happiness over the partnership with VeChain, Raymund Chao, the Chairman of PwC Asia Pacific and Greater China, said, “With this partnership with VeChain, we aim to build reliable and assigned business ecosystem so as to cater enduring challenges in supply chain management, food trust and anti-counterfeiting areas.”
He further added that the mission of VeChain is in sync with the purpose of PwC of solving important problems and building trust in society.
This partnership played a vital role behind the improved performance of VeChain over the past three months. This is because, after the partnership, the interest of large conglomerates increased in the blockchain protocol of VeChain.
The partnership between both the companies was even more worthwhile as PwC acquired a small ownership interest in the digital currency network. The step was taken by auditor was on the backdrop of its plan to collaborate with the development team of VeChain as an investor rather than a client.
It is important to acknowledge the participation of PwC in the long-term growth of VeChain because the vast majority of partnerships secured by blockchain projects in the cryptocurrency sector are often deals that state multi-billion dollar conglomerates as the beneficiaries.
For instance, many projects have claimed to have secured strategic partnerships with major firms in the technology sector such as Google and Microsoft, but the actual nature of the deal revolved around the projects paying the conglomerates for their services, not the other way around.
Since May, VeChain has aggressively expanded its services internationally, winning a contract with the government of China to develop a vaccine tracing solution.
Despite the Chinese government’s ban on cryptocurrency trading, it has allocated more than $3 billion in 2018 alone to state-funded blockchain funds, primarily to finance blockchain startups and innovative technologies.
This month, China’s Ministry of Information Technology ordered local financial authorities and agencies to speed up the development and commercial implementation of the blockchain, which will positively impact companies like VeChain that are actively cooperating with the Chinese government.
“The industry remains in a nascent stage. While the technology has brought benefits, it could also bring risks such as technical loopholes, and challenges to current systems and norms, the ministry said. The ministry also said it will work with local authorities to push for healthy and orderly development of the industry,” the report of Xinhua, a state-owned publication, read.
The abrupt price surge of IoT-focused digital currency was evidently fueled by the general recovery of the cryptocurrency market and the re-established momentum of tokens. But, the valuable partnerships the company has been able to secure since early 2018 drove its recent momentum and will likely continue to positive impact its long-term growth.