VeChain mints €1.5M NFT from Italian automobile company

• Having begun in 2015 as a private consortium chain, VeChain has developed into a crucial ecosystem pertaining to the Internet of Things (IoT). 
• The latest partnership wants to revolutionize supply chain management.

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VeChain Foundation has announced that it recently minted a non-fungible token (NFT) worth €1.5 million, representing an actual inventory of an Italian automobile company. According to the announcement, VeChain and SupplyMECapital are building new capital-raising models without incurring debt but tapping on the NFT prowess. Through the use of the VET ecosystem, VeChain intends to revolutionize funding models to fit in with existing assets and liabilities.

Sunny Lu, CEO at VeChain Foundation, said;

This partnership brings to market a highly innovative solution that employs emerging digital technologies to solve a decades-old problem for businesses globally. By deploying this, our companies together are able to limit a need for overproduction, promote sustainable global development, improve cash flow for businesses and create a new digital asset class that provides capital directly to the real economy. We look forward to launching – phase 2 of our alliance to involve our community and the rest of the crypto market in this disruptive initiative

VET coin has gained approximately 4.5 percent in the past seven days to trade around $0.01871. Nonetheless, the VET ecosystem has lost approximately 84 percent of its value in the past year following the sustained crypto bear market.

VeChain and SupplyMeCapital Mutual Benefits

Following the implosion of FTX and Alameda, blockchain companies are looking for ways to regain customers’ trust. According to top crypto investors and leaders, building stronger bridges is a factor in regaining customers’ trust. However, due to crashed confidence in the crypto market, companies are investing more in raising capital. Monetising companies’ inventory is the top priority for VeChain and SupplymeCapital.

Furthermore, the scale of the market for inventory monetization is immense with respect to the global economy. 

“Our Inventory Monetisation facility offers a new, more cost-effective alternative for businesses to free up significant levels of working capital,” Alessandro Zamboni, CEO at Supply@ME, said.

VeChain has, however, not specified the Italian automobile company that minted the NFT.  Nonetheless, according to data provided by vechainstats, the NFT contract shows it was minted on 25.10.2022. 

The use of digital artwork to raise capital funds has accelerated significantly in the past few years. Furthermore, the NFT market happens to use auctions with floor prices which opens rooms for wash trading. Moreover, it is possible that an NFT owner will buy and sell their product to create fake trading volume.

Side notes

The VeChain ecosystem has a market capitalization of approximately $1,352,341,331 with a 24-hour trading volume of about $41 million. Having begun in 2015 as a private consortium chain, VeChain has developed into a crucial ecosystem pertaining to the Internet of Things (IoT).