VeChain (VEN) – Sunny Lu Dispels FUD Rumours, A reason to HODL
What is happening to VeChain (VEN) prices? That is the single most asked question on VeChain’s subreddit forum today.
“VeChain Foundation didn’t sell any VENs to the open market and we are not going to do so as well”- Sunny Lu, VeChain CEO
It’s a reaction to the disturbing FUD rumors that have hit VEN holders hard with high walls and large sell orders fueling resentment towards VeChain’s team. And that’s how and why VeChain CEO Sunny Lu had to come out and personally address the rumor. In fact, he did so in two forums. First, he joined VEN holders on Telegram to talk about accusations that VeChain was the whale that had been dumping large amounts of VEN coins on the market. Then on his official Twitter page, Sunny repeated the same point to an enraged VEN holder.
Here is what he tweeted this morning in apparent reference to the VeChain Financial Report that covered November 2017 to January 2018.
Responding to this tweet, one user accused the VeChain team of placing large sell orders to keep prices low. Sunny explained that they couldn’t do such a thing and that a lot of the FUD doing rounds was just bad speculation and poor understanding of the VeChain project. Indeed it’s true that VeChain couldn’t be driving prices into the ground by releasing VEN into the market.
The accusation that 9.5 million VEN was paid to the VeChain team seems baseless too as that is something that the VeChain Foundation had foreseen. All the top management team members signed a “lock-up” agreement that would keep their VEN out of the open market for two quarters from the end of the ICO sale last August.
The VeChain CEO had earlier joined the Telegram chat on VeChain to dispel rumors that emanated from their financial report, and which centered on issues of in-house suppression and malicious dumping of VEN to keep prices low.
Sunny Lu’s response that crushed the FUD
Sunny Lu responded by way of four broad answers, before promising that the VeChain team would soon organize for a proper business AMA to address concerns from VEN investors. This is what he said:
Read the whole response here.
The FUD came out of nowhere
VeChain (VEN) is having a somewhat mixed week. The damaging FUD rumors came out of nowhere and at a time when the VEN market value is sliding down, yet it is also one of VeChain’s best weeks. The VeChain team announced it had partnered BMW and renowned Oxford University.
These two deals preceded the VeChain rebranding to VeChain THOR that took place last week. It has all looked good for this fast-rising cryptocurrency that has outperformed many others in 2018. The numerous partnerships provide an assurance that VeChain is going to be a big long term.
Meanwhile, VEN price chart that hit an ATH of $9.54 on January 22nd has continued to slump after VeChain (VEN) rebranded to VeChain THOR, looking as if it will bottom this weekend. A worrying time, isn’t it? Well, it could be, but a long-term view of the scenario appears brighter.
So, why should you hodl your VEN beyond this bearish outlook?
My rationale for this lies in today’s FUD rumor and VeChain CEO’s big revelation
This actually came in Sunny Lu’s third point during his 30-minute appearance in the VeChain Telegram chat.
“The Foundation is setting up new rules and regulations for future enterprises’ purchase, we still need to figure out more details but generally we will require the enterprise to buy from open market which will be the case anyway after full circulation” – Sunny Lu
Part of the misunderstanding that led to the FUD was the feeling that VeChain was allowing enterprises and billionaire investors buy VEN at low prices to later dump them in the market. The CEO’s response was that new regulations would be instituted where enterprises will have to buy VEN from the open market.
To put it simply, major partners who need THOR for their everyday operations will buy on the market creating high demand for VEN. The end result is that the price of VEN will explode. It’s not hard to imagine that scenario, bearing in mind that companies would need massive amounts of THOR and so will buy in large scale.
The price of VEN may be going down but there is a very big chance VEN will rebound big time. The issue of very low prices should not bother you at the moment. I’d like you to ask yourself one question.
Why do you think big companies and business billionaires are signing up to VeChain? The answer is simple- they’ve seen the potential in VeChain as a future investment. In short, I am saying the best way to forget the FUDs is to hold onto your VEN coins. The future is certainly bright for VeChain, the leading supply chain cryptocurrency.