Do institutional partnerships affect the price of cryptocurrencies? Or is this just another case of market correction on Vechain (VET)? We focus on VeChain’s latest partnership with the Chinese company, People’s Insurance Company of China (PICC), and reasons to the price decline in the past 24 hours.
VeChain Foundation made an announcement last weekend of one of the largest partnerships in the world of cryptocurrency and blockchain technology. The People’s Insurance Company of China (PICC) entered into a partnership relationship with DNV GL, an international accredited registrar and classification society and VeChain to bring digital transformation to the insurance industry. The PICC is a Chinese company that has assets over $120 billion USD and is a big player in China’s property insurance industry.
Of the partnership, Sunny Lu, Co-founder at VeChain said that,
“Collaborating with PICC expands our business within the insurance industry. We are confident we will provide great service and products to PICC, together with DNV GL.”
Despite the huge partnership with Beijing based firm, People’s Insurance Company of China (PICC), Vechain (VET) price fell slightly to $0.017642 USD, representing a 2% decline in the last 24 hours. Such events have led most investors in the cryptocurrency communities to ask questions on the overall significance of institutional partnerships on market price of crypto.
We focus on some of the reasons the coin has faced a slow response on the news of the partnership with PICC and the overall impact of the slow start to VET’s future price.
1. Cryptocurrency market swing impacts VET’s price
One thing that has been clear in the arena for the past decade in existence is the close positive relationship amongst the large cap coins. This played a huge role in seeing VeChain’s price drop by 2% as the market followed Bitcoin’s drop by a percentage point during the weekend. During a selloff in the crypto market, coins struggle to push up price as most investors only focus on the charts and not what is happening in the technological or managerial developments on the cryptocurrency project.
VeChain is suffering the same predicament as the market slowed in the last 48 hours after a sharp bull run since the last week of August.
2. Investors’ interest lies in charts only
It cannot be emphasized enough the need for investors to follow through with the technological developments and partnerships on the cryptocurrencies they hold. VET’s low price can be attributed to the increase in investors focusing on the price while little understanding the project’s back story. Having such a huge partnership with PICC has slip under the minds of most investors is a great example of this.
With the market facing a strong bullish run at the start of September then slightly falling, VeChain followed the trend despite a strong partner on board.
The future of VeChain Thor partnership with PICC
Despite the fall in price, VeChain faces a very bright future after the VeChain Thor mainnet launch at the beginning of summer. The partnership made with PICC will impact the price of VET in the coming days with the market set for a re-bounce according to the analysts.