Many cryptocurrencies with top market caps rose to their positions after a massive surge – either due to a new development, an explosion of support and hype, or even an unexplained, spontaneous pump. Even more peculiar are coins of the opposite nature – those that appreciate to huge valuations without causing many waves.
What is Veritaseum?
Veritaseum provides its users and clients with several tools dedicated to trading and financial markets. The main component of Veritaseum is the VeADIR (Veritaseum Autonomous, Dynamic, Interactive Research) trading platform, which is an autonomous financial machine, or trading algorithm, that exposes VeADIR users to a number of trading opportunities, including strong buy positions and highlights of undervalued or under-reported assets.
The assets found on the VeADIR platform consist partially of the tokenized (“Veritized”) sub-assets. Essentially, stocks, commodities, and other investment vehicles can be pegged to Veritas (VERI) sub-tokens, to be traded on Veritaseum systems such as its in-house exchange, VeRent, or on independent markets that incorporate the Veritized tokens. VeRent also allows users to buy, sell, or rent VERI. Users may look to rent VERI tokens for temporary access or usage of components of VeADIR which require VERI fees, paid to the development team, to use. Additionally, license holders can rent or resell their access to VeADIR through VeRent. According to the website, while it is in beta, access to VeADIR requires a balance of at least 3,333 VERI, which is equivalent to roughly US$1 million. Beyond this, fees must still be paid to utilize the technology. Alternatively, accredited investors with at least US$5 million in assets or members of “family offices” can also receive access to the platform.
VeADIR is an interactive, dynamic platform for trading and research that operates through the coordination of a number of smart contracts. VeADIR was inspired by Reggie Middleton, founder and CEO of Veritaseum, and built by the lead engineer, Patryk Dwórznik. Reggie Middleton is a widely renowned analyst, and his accomplishments include predicting and publicizing his opinions on the housing collapse in 2007 prior to the global recession that took place in 2008.
Veritaseum Autonomous, Dynamic, Interactive Research is advertised as a revolutionary trading and research platform that outperforms any existing application. Users can activate the smart contracts to research various assets, as well as execute automated trades. While there is little public access to the platform, it can be concluded that the price tag is at least somewhat justified if VeADIR is as extraordinary as it lets on.
Regardless of the worth of the technology offered by Veritaseum, there are a number of glaring issues that jeopardize Veritas’s viability as an investment. The most obvious point of discontent is the VERI supply. Of a total supply of 100 million tokens, only 2,036,645 tokens are currently in circulation. The other 97.9% are held in a single address, owned by Middleton, the CEO. At a market price of US$290, those almost-98 million VERI are valued at over US$28 billion. Of course, if the CEO decided to sell even a small portion of the non-circulating supply, prices would surely enter a free fall. To counter this possibility, Middleton offers over-the-counter, bulk purchases to private investors. Additionally, fees paid through the use of VeADIR go back to Reggie and the rest of the team.
Another point of criticism is this project’s team, which consists of just three individuals. For a coin valued as highly as VERI, this is certainly disturbing. Supporters may suggest that, unlike other projects, Veritaseum serves a niche purpose, and thus does not need such an expansive team. However, it is still worthwhile for any meaningful project to hire positions such as community managers and product managers. For a project that offers a specific service, it is similarly important to hire a position such as a marketing head to expose the project to its target market.
Lastly, critics may question the utility of VERI to its holders, and even the necessity of Veritaseum having any token whatsoever. The sub-token is simply an entity that automatically creates ETH tokens based on the specifications inputted by the user and the fee for the creation. This could be done using dollars or any other cryptocurrency. Moreover, the same can be said about access to the platform. Licenses could theoretically be bought, rented, and resold with any currency, as could the fees required to use VeADIR. The main utility of VERI is that of an investment that appreciates in value due to individuals forfeiting VERI to use the applications provided by Veritaseum. However, appreciation will realistically only take place if the amount of coins removed from the circulating supply via license purchases and fee payments is greater than the number of coins added to the supply through over-the-counter sales.
When VERI first hit exchanges in July of 2017, its price was about US$50. Days after trading began, the team announced that $8 million worth of tokens had been hacked and sold on EtherDelta, which momentarily dropped the price below US$5. However, supporters heavily bought the dump and the price corrected in just days. Since then, VERI has seen modest, continual gains. From July to today, the coin has appreciated almost six times against the dollar and has outperformed Bitcoin by about 80%. VERI achieved an all-time high of almost US$500 on January 9, and while the token has risen against Bitcoin since then, it has lost significant value due to Bitcoin’s rapid decline in the past month. VERI currently trades at US$290.
Despite the major criticisms leveled against Veritaseum, there is potentially future profit to be made, especially if VeADIR attracts more users and it is confirmed that the platform is as effective as it claims to be. However, there is huge risk associated with VERI, much greater than that of coins with similar market caps. The price of this coin can be manipulated heavily at the whim of the team. If they decide, at any point, to sell some portion of their coins, the price will tank. Additionally, low daily volume numbers (barely US$150,000) suggest there is not as much organic interest in the project as the market cap may imply. Potential investors should certainly be cognizant of the risks associated with this coin and do ample research before making any purchases.