Bad day for the crypto Velo
Bad day for the crypto Velo

Bad day for the crypto Velo

By Marco Cavicchioli - 24 Feb 2023

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Today the price of the Velo crypto dropped 22%.

VELO is Velo Labs’ token on the Stellar network, which is building a unique credit exchange network.

The network is powered by the Velo protocol, which is a blockchain-based financial protocol that enables the issuance of digital credits and asset transfers for companies using smart contracts.

Price and performance of Velo crypto

VELO debuted in the crypto markets in September 2020, a few months before the crypto markets’ last big bull run was triggered.

At the time, its market value was less than $0.5, but only two months after listing it had already risen to $1.8.

At the beginning of 2021 it fell back to $0.5, making it clear that what had occurred in the months following the launch was probably just a speculative bubble, so much so that during the last big bull run the price merely rose to $2 in March of that year.

In other words, the all-time high touched by the price of VELO during the last big bull run was only 10% higher than that touched during the speculative bubble that formed shortly after its launch in the crypto markets.

Indeed, as early as late March 2021 a long slump began, as by the end of April it had already returned to $0.5 in the middle of the crypto bull run.

Even though in early September of that year it went back up to $1, by the end of the month it had already fallen below $0.5 making a new all-time low.

In November 2021, while Bitcoin and Ethereum were making all-time highs, Velo’s price also fell below $0.2.

The collapse and descent to the depths of hell

The year 2022 was a terrible year for Velo’s price, so much so that it even plummeted to one thousandth of a dollar ($0.001) in December. At that point the loss was 99.8% from the initial price, and 99.95% from the highs.

The situation might have looked like that of a finished project, and a collapsed token, and instead Velo during 2023 seems to be trying to recover.

Indeed, yesterday it set its 2023 annual high near 14 thousandths of a dollar, or a 1,300% gain from its December lows.

However, even this may turn out to be just yet another speculative bubble, as it now loses 22% from yesterday’s annual high.

To date, even though the price is 977% above the all-time low of December 2022, it is still -99.4% from the 2021 highs, and -97% from the launch price prior to the last big bull run.

So although it may seem that Velo is doing well in this 2023, in reality it is still not doing well at all, although it seems to be showing signs of a possible, but theoretical, revival.

The Velo project

The main mission of the Velo project is to enable partners to transfer value to each other in a way that is safe, secure, timely and transparent.

To do this it enables its partners to issue digital credits through a smart contract that uses the Stellar Consensus Protocol to process and settle transactions.

In this way it enables multiple business use cases based on issuing digital credits secured by collateral that can match any fiat currency.

The problem is definitely competition, because while there are not many platforms that allow the issuance of credits, nowadays it is very easy for anyone to issue an exchangeable token safely, securely, quickly and transparently on some low-cost blockchain, or layer 2.

So, for example, as soon as Binance Smart Chain (BSC) exploded in early 2021, the innovation envisioned by Velo was literally overtaken by the issuance of tokens on this secure, fast and transparent blockchain.

Marco Cavicchioli

Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded and the Facebook group" Bitcoin Italia (open and without scam) ".

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