I cannot claim to be a very tech savvy individual, far from it, but I do have an interest in technological advances. It is thus because of this interest that I’ve been following crypto markets closely and how the technology could potentially disrupt various mainstream industries. One of these coins is Veritaseum and it has taken me some time to understand. On their website, the creators claim that it is a gateway to peer-to-peer capital markets, meaning that the platform should be used as a way of investment. There are a lot of other bold claims on the Veritaseum website but none of them are really clear about the project, and I think it’s important for any investor to really now about it first before investing in this coin.
What is Veritaseum all about?
To begin let me just say that I’ve never appreciated corporate jargon. Companies use vague terms and complex sentences to keep investors confused. To some extent, I found the Veritaseum website to be full of this, and I didn’t appreciate it. This may even be the reason why the Veritaseum platform was at first thought of widely as a scam by some crypto investors. On various crypto review websites, some investors also highlighted how the Veritaseum website didn’t actually make the idea clear to investors, which is how I felt. Nevertheless, there is some merit to the company and what they claim to provide, and this is what we shall be highlighting. (These are the: 10 Most Important Resources to a Cryptocurrency Trader)
To understand what the company’s vision and the platform, you have to look at more than just the website. The key to Veritaseum is the founder of the company, Reggie Middleton, who has been at the forefront in promoting the platform. According to various sources including The Huffington Post and an article on Forbes, he is a flamboyant character and has also had a lot of success in forecasting economic disasters. He made his money in real estate before liquidating his assets starting in 2004 sensing the housing bubble on the horizon that eventually led to the 2008 financial crisis. As he claims, he has had years of success since the turn of the century with the dot com burst to the global financial crisis of 2008.
Now he has turned his sights to crypto with the creation of Veritaseum, which is meant to replace conventional methods of investing. The idea of the platform is to facilitate direct transactions without the use of a middleman. Assume you wanted to buy Bitcoin, this would normally mean going to an exchange, making a deposit in fiat or another cryptocurrency and the exchange would complete the purchase for you. With Veritaseum, you would not need an exchange since you can buy the Bitcoin directly from the seller, thus cutting the exchange (middleman) out of the equation. In the same way you bought Bitcoin, so could you with other cryptocurrencies, stocks, commodities, etc. Basically, Veritaseum is supposed to enable direct trades of any product without limit. (Ever wondered: Which Are The Most Influential Cryptocurrency Markets By Country?)
The concept is actually quite simple when put into these terms, unlike their own website, and this is what the creator intended – to phase out middlemen by allowing direct transactions between individuals. The services are also cheaper than conventional investment platforms like hedge funds and investment banks that charge as much as 2% of invested capital per year and an additional 20% commission on all profits. Plus, you get to determine the duration you would like to hold the position as you could close the position at any time. The only cost is a 5% flat fee paid once when you open a position.
How does it work?
The idea behind the platform sounds almost out of this world and truly revolutionary; or as the folks at Veritaseum like to call it, disruptive. But this is where the problems among investors start to crop up because understanding the underlying processes requires understanding of various concepts. Before getting into that, we first need to talk about VERI, Veritaseum’s native token. All of Veritaseum’s services can only be accessed by those holding VERI tokens, which can be bought at a few exchanges like ForkDelta. This is a small crypto exchange, and VERI is still not available at the world’s largest exchanges as yet. (Do you know the: 5 Tips to Choosing the Ideal Cryptocurrency Exchange?)
Now you may be asking yourself why you have to go through ForkDelta or some other exchange when the whole idea was to avoid middlemen. Fortunately, you will only need to buy VERI from an exchange the first time, unless you need more tokens. Afterwards, your assets will be delivered in another form, whether physical or as a digital asset. We shall look at how this happens in the coming sections.
It all starts with VeADIR, which is the main software for the platform. It stands for Veritaseum Autonomous Dynamic Interactive Research, and is at the heart of Veritaseum. According to Reggie Middleton, it is the algorithm that actually performs the transactions as initiated by the investor after analysing the markets. To understand this, you have to look at an example. Let’s say you wanted to buy Cardano after seeing the Cardano live charts directly from the markets without going through an exchange. Using the Veritaseum platform, you could ‘ask’ VeADIR to purchase the Bitcoin and add it to your portfolio. The algorithm would then search for the lowest price in the markets at which sellers are willing to let Bitcoin go at and purchase it for you. When the transaction is complete, your Bitcoin would then be held by Veritaseum, but it would still be yours. (These are the: Cardano (ADA) Price Prediction Update And Forecast For Autumn 2018)
Thereafter, if you wanted to liquidate your position, you would receive all your assets at any time. In the above case of Bitcoin, you would get Bitcoin sent to your wallet whenever you choose to close the position. For other physical assets, then you would receive that physical asset delivered to you regardless of what it is. For example, if you had bought gold, then you would receive the amount of gold you bought using your VeADIR. The good news is that you don’t actually have to close the position in a short time since a position can be opened for up to 99 years. (Check out the Bitcoin live charts)
Not only does VeADIR find the asset you would like to purchase and complete the transaction for you, the algorithm also works to find the most profitable assets to invest in. You see, Veritaseum’s main intention was to create a platform where investors can get vital information about various assets to help them decide on the best investments. As an example, you can submit a request for a particular ICO, stock, coin, etc. and pay using VERI. The VeADIR algorithms would then work to determine the profitability of the asset based on various criteria. I haven’t tried it myself, but I assume that if you were to, say, request information about whether to buy Apple stock, the algorithms would check the company’s stock price and its performance in the past to predict future price shifts. (Basic Cryptocurrency Terms You Need To Know)
VeADIR also combines human and computer analysis to generate various profitable portfolios covering various assets and targeting different risk appetites. For someone interested in long-term investment, the portfolio could include assets like gold, stocks, and currencies while a riskier portfolio could involve mainly coins and perhaps some volatile assets like gold. The portfolios available through VeADIR are researched by the experts in the Veritaseum team as well as computer algorithms to generate the most profitable assets.
From the name, you can already tell that this is the research arm of Veritaseum that uses humans to look for favourable opportunities. The company has hired experts in financial services who know a lot about investing, and they use their expertise to find the most profitable assets and make them available to users of the platform. (Ask yourself: What Is The Future Of Cryptocurrency In Finance?)
VeADIR and VeRESEARCH come together in VeEXPOSURE to display the many investment options available to the user. It is from here that one gets to choose how to spend their VERI depending on their risk appetite as analysed by both humans and computers to come up with multiple options. It also manages the investments already made by the user so they are able to see just how exposed they are in the markets and to make suitable adjustments as necessary. Thanks to the algorithms and experts at Veritaseum, the exposure is constantly updated to keep you aware of your investment. Even if one day you find that some of your assets are performing poorly, VeEXPOSURE will advise you on whether to close the position or keep it open based on the research. (Investor Tips 2019: What To Include In Your Portfolio)
With all these assets available to buy on the Veritaseum platform, you may be wondering where they all come from. VeRENT is the feature of Veritaseum that allows anyone to submit their asset so that individuals can buy from them directly. So if, say, you want to sell your Monero to some people directly without going through an exchange, you simply make the offer on VeRENT and then VeADIR does the rest. If you have Monero to offer, simply make the offer on VeRENT stating the price you’re willing to sell at and how long the offer will be open. To do this, you would also require some VERI tokens. On the other side, someone may be interested in buying Monero at your price and VeADIR will connect you directly – buyer to seller. (The Most Prominent Cryptocurrency Hacks and Scams You Should Know)
This feature has been a point of controversy since it makes Veritaseum seem more like an exchange than a platform. I mean, why not just sell the Monero you have to an exchange based on Monero price charts instead of using Veritaseum? Well, there may be various reasons, one of them being privacy and the other, regulations. In the first case, an individual may be disinterested in going through the procedures required by an exchange to verify your identity and would prefer to trade directly with another willing party. Veritaseum bridges the gap by connecting people directly without the middleman. In the second case, some countries like China have banned crypto trading, and residents have to rely on peer-to-peer platforms like these. Plus, exchanges may have high fees and other restrictions. As an example, major exchanges don’t allow purchase or sale of coins worth less than$1,000, so what’s a person to do if they need or want less? The answer, VeRENT. (This was: The Forecast of Monero (XMR) in 2018)
This is the feature in Veritaseum that allows anything to be sold through the platform. So far, only cryptocurrencies are available to buy on the platform, but in theory, Veritaseum can facilitate the trade of any asset. Imagine you had a computer to sell at home but didn’t want to pay the fees involved when using a service like Amazon or eBay. You could go through VeTokenization and have the computer tokenized by Veritaseum. Once the company approves the item, then it is listed on the platform and VeADIR makes it available to any interested party. Of course, this is just a very simple example, because the asset can be anything even real estate, precious metals like gold, stocks, bonds, etc. Literally anything could be sold through Veritaseum as soon as it is tokenized. As soon as an asset is tokenized, a smart contract is generated for it, and that makes it secure to trade because you need to trust the technology and not an individual. (Check out the live price chart for gold)
Once again, the idea of cutting out the middleman becomes a bit fuzzier because Veritaseum comes in the middle, but not actually. Unlike a company like Amazon that handles the transactions and even the trade, here only the initial contact is facilitated leaving the rest to the buyer and seller. (Do you know: Which Are The Best Commodities To Trade In The Autumn?)
How do all these hold up in the real world?
We have already seen numerous coins come up with great ideas but that may not be feasible in the real world. By the looks of things, Veritaseum may actually have something real and not just theoretical. As we have mentioned before, only coins are currently available on the platform, but that is a good enough start. The more people continue to invest in crypto and trust in blockchain technology, then we shall see more assets get tokenized on Veritaseum and their trade to increase. The good news is that they actually have a working prototype, and not just a project in the works. Many of the projects funded by ICOs in the past few years are yet to develop any actual product, so it is worth noting here that Veritaseum is already off the ground. (Are you asking yourself: What is An ICO and How Can I Make Money On It?)
One problem that could hold back Veritaseum is that their native tokens, VERI, are still not widely available around the world. Since everything on Veritaseum requires VERI from requesting for research on VeADIR to the actual purchase of products, it would only be great if VERI was more accessible. This is not too difficult to achieve if only demand for VERI increases as people appreciate the things they can do on the platform, and they only need to advertise more. Already, the team has been going around the world attending several conferences and spreading the word, but they need to do more. (Master these: 5 tips to identify the perfect ICO to invest in)
There was also an incident, shortly after the ICO was concluded, on the 23rd of July 2017 when the company got hacked. About $8.5 million worth of VERI tokens were sent to an unknown wallet by the attacker(s). After the incident, the company was under fire because people claimed they did not have enough security to protect investors. The founder was quick to assure investors, though, over social media that the problem was fixed and that third parties would be liable and not the investors. That was a good step by Middleton since there had been numerous other hacks where the investors were the ones to lose out. (Some of: The Most Prominent Cryptocurrency Hacks and Scams You Should Know)
Historic performance in crypto markets
The company Veritaseum has been around since 2013 when the founder, Reggie Middleton, first thought of the idea. But it was officially launched in early 2017 through an ICO that ran from April to May, 2017. During the ICO, 2 million VERI tokens were made available to the public out of a total 100 million tokens. According to the company, the remaining tokens are to be used for creating partnerships with other companies. The issuing of just 2 million tokens out of a total 100 million has raised eyebrows because that is a very small proportion. Besides, some excellent performing coins like Ripple have over 40 billion coins in circulation from Ripple live charts and they are still performing very well. (Investing In Cryptocurrencies: Watch These 5 Profitable Cryptocurrencies)
On the other hand, remember that VERI tokens are supposed to be used within the Veritaseum platform for all of the features mentioned above. If so, then it would be wise to hold on to many of the coins to facilitate future tokenization of assets. Even so, perhaps just releasing 2% of the coins may be too restrictive, and it would explain why the coin does not enjoy a huge trading volume on a day-to-day basis. Today, it is the 109th coin on CoinMarketCap out of a total of 2,071 coins. Although low on the list, it is still doing well all things considered. (Behold the: Ripple Price Forecast, Making Money Moves!)
Anyway, during the ICO, VERI could be bought using ether at around $1.5 each. Soon after the ICO, the coin’s value rose almost to $50 and then kept rising in a similar fashion to all other coins in the market. 2017 saw almost every cryptocurrency increase in value exponentially, and VERI exceeded $470 by the 10th of January, 2018. In less than a year, the coin had seen an 840% rise in value of bought in June and more than 30,000% if bought during the ICO. Following this huge growth in value, again VERI went the way of every other coin, decreasing in value all through 2018 to the current market price just above $15. Despite this huge drop in value, you can still see that someone who had bought VERI tokens during the ICO would still be enjoying a huge growth in value over just 18 months – greater than even the S&P 500. Now we’re going into a new year and we should look at whether someone should consider investing now, or is it too late? (Here is the: Ethereum Price Prediction Update And Forecast For Autumn 2018)
Should you invest in VERI or not?
One unique thing about Veritaseum is that it was not meant for speculation, but rather more for actual investment. The VERI tokens are not the primary source of profit, but rather the investments one can do with them. Therefore, one should look at VERI more for its applications than the actual price. That being said, speculators may still be only interested in the tokens themselves and their price fluctuations, so let’s look at that from two perspectives. (Learn the: 5 tips to forming the most promising cryptocurrency investment portfolio for 2018)
From a technical perspective, there isn’t any positive sign to motivate an investor to consider VERI because prices have been declining steadily since January of this year. Over the past week, coins have experienced another dip in value as a whole, with VERI dropping from $40 at the start of the month to the current value of $15. This has been attributed to the dispute among Bitcoin Cash developers that has caused a fork. This recent dip has kept VERI value below the moving average and heading into no-man’s land because this s below the previous low of $24 on the 13th of June, 2017 according to CoinMarketCap. If the decline continues toward the end of 2018, we could even see the value of VERI drop down to $10 at the start of 2019. However, only the fundamentals could give us an idea of the future. (Here is the: Bitcoin Price Prediction Update And Forecast For Autumn 2018)
The recent declines in value of cryptocurrencies have been due to a lack of interest from major, institutional investors. This has been caused by the denial by the SEC to create a Bitcoin ETF that may have caused investors worry. On a positive note, though, the VERI chart seems very similar to that of Bitcoin and many other coins, which means that it is affected by global trends just as much as any other coin. This means that there are still investors interested in the coin and that its value may rise when crypto markets once again become bullish. The problem is that it is not easy to predict when this will happen, although all signs point to a bullish 2019 for crypto. Not only will many of the problems with crypto be solved by then, but there is still hope that coins will become more widely used. (We were wondering: Will Cryptocurrencies Recover From Their Price Slump In 2018?)
Not to forget that VERI has its own proprietary use within the Veritaseum platform for investing. If people continue to put their trust in the company and decide to invest more through it, then VERI could increase in value even more over time. Considering its current price and future predictions, VERI will probably not go up beyond $100 in 2019, even if crypto markets regain their bullish momentum. Even so, that would be more than a 600% increase in value over just a year, which is not bad at all.
The scepticism surrounding the company and its founder will always be there, but I’m tempted to give Veritaseum a go-ahead because the idea seems sound. However, I would prefer to use Veritaseum more for its features in investment rather than trade the tokens themselves on the open market. There seem to be a lot more useful applications there. (Before investing: Learn How Cryptocurrency Scams Operate And Avoid Them)
There is really only one way to truly understand, and that is to hear from the man himself, Reggie Middleton, in this video: