VeChain has officially kicked off its plan to buy back $25M of its own tokens. The VeChain Foundation will be implementing the plan over the course of the next quarter.
The Foundation will store the purchased VET to continue acquiring VTHO, which will be used for financial support for projects seeking to operate on the network. With the plan, the Foundation seeks to make it easier for developers, projects, and businesses to try out the VeChain blockchain.
VeChain’s long-term plan is to establish VET as a mode of value transfer within the network and also as a store-of-value. Although more details have yet to be announced, the purchased VET will be used for this purpose. The acquired VET will be used to experiment with “various jurisdictions and financial institutions on the medium of transfer and store of value concepts.”
The news has led to a slight bump in price, but overall the downtrend VET has been experiencing is still on track. At the time of writing, it is up 6.5 percent against BTC and a negligible increase in USD value.
VeChain’s buyback program comes at a time when the project has been announcing positive news for the past few weeks.
Last week, it was revealed that Walmart China plans to utilize VeChain’s Thor blockchain. The venture will be a joint collaboration with Walmart China, PricewaterhouseCoopers, Inner Mongolia Kerchin, and the China Chain-Store & Franchise Association. So far, Walmart has 23 product lines being monitored on VeChain and is expecting another 100 products by year’s end.
Given such positive news, the VeChain Foundation is trying to keep up the market momentum in light of more news soon-to-be-announced. However, VeChain’s market strength will inevitably rely on Bitcoin’s strength in the coming weeks.
Do you believe that VeChain’s buyback program will have a positive impact on price? Let us know your thoughts below.
Do you want to BeInCrypto? Join our Telegram Trading Community for exclusive trading signals, educational content, discussions and project reviews! Images courtesy of Shutterstock, Trading View and Twitter.