In 2016, the total revenue generated from the production of counterfeit goods (perfumes, jewelry, clothes, etc.) is estimated to have exceeded over 2.5% of the world’s entire trade volume, equaling around 450 billion USD. Even more eye-opening, is the fact that an estimated 86% (400 billion USD) of these sales are believed to have originated from China and Hong Kong alone. Most notably, the apparel and fashion sectors have been highly targeted, as the market ranked #1 in counterfeit seizures in 2016.
Despite a strong global emphasis on strengthening customs authorities and regulating international trade, now more than ever an innovative solution is necessary to help remedy this global dilemma.
Putting FashTech to the Test
VeChain is a project that aims to completely eliminate the threat of fake goods by utilizing blockchain technology to permanently record physical item identities using smart contracts on the Ethereum mainnet. One elite Chinese streetwear label, BABYGHOST, has decided to experiment with the project to protect itself from potential counterfeiters. The process involves embedding a small VeChain chip inside each piece of clothing, along with a unique QR code on the label of the item. Then, when a phone with the VeChain smart app is brought into close proximity with an original BABYGHOST item, the chip will transmit its public key and a digital “story” to the user for verification.
Value Creation for Token Investors
VeChain’s main objective is to increase the total number of products supported on its blockchain-based cloud management platform. The increase in its digital inventory coupled with an increase in demand for the VeChain token (due to its utility as a unit of exchange for product listings), will help increase the future price of the token. In addition, the token is designed to be sought after by customers as well, due to its ability to function as a payment system for obtaining products from retailers and exchange ownership of registered clothing items secondhand.
VeChain Price Action
During November the token formed a double bottom around the 2500 Satoshi level. Recent breakout is propelling price action to near all-time high BTC levels.