VET/USD market overview: VeChain expands reach into China’s wine imports industry, price falls after short-lived recovery

  • The VeChain Wine Traceability Platform was launched last year in collaboration with a major Chinese importer.
  • There has been a 10% increase in sales following VeChain platform integration.

As per an announcement, Penfolds Bin-407 bottles are now available at three locations, tagged and powered by VeChain’s Wine Traceability Platform. Penfolds happens to be one of Australia’s oldest and most iconic wineries. The VeChain Wine Traceability Platform was launched last year in collaboration with D.I.G, Shanghai Waigaoqiao Direct Imported Goods Co., Ltd., a major importer in China. 

The main purpose of the Platform is that it authenticates the origin of each bottle and stems the flow of counterfeit products. As per reports, counterfeit Penfolds accounted for over $1 million in sales in 2017 in Shanghai and over $2.8 million in fake bottles in Zhengzhou.

D.I.G. pointed out that a following the platform integration, there has been a 10% increase in sales. This shows that VeChain’s solution has given a positive boost to customer trust.

“By reading the NFC chip, customers can access the relevant wine bottle’s immutable product information stored on the blockchain, including provenance information verified by independent auditors such as DNV GL.

With the VeChainThor Blockchain technology and the WTP platform, Penfolds and similar wineries can now make it less likely for their products to be counterfeited while allowing consumers to form more in-depth insight into the product, enhancing their confidence and trust.”

VET/USD daily chart

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Following the news, VET/USD finally had a bullish day after six straight bearish days. This Thursday, the price of the asset went up from $0.0049 to $0.0052, where it met, achieving a high of $0.0058. Unfortunately, the bulls lost steam and the price went down to $0.0048 in the early hours of Friday.

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