Launched in 2020, VELO has rapidly established itself as a reliable blockchain-based payment platform, streamlining cross-border remittances and financial services through its unique credit exchange mechanism.
Today, we will cover the following topics:
- About Velo
- How does Velo work?
- Key Features
- Technical Analysis
- Why is VELO The Coin of the Week?
About Velo (VELO)
What is Velo?
VELO is a blockchain protocol revolutionizing the remittance and cross-border payment industry in Asia. Often referred to as the "Thai XRP," VELO has gained this nickname for its innovative approach to facilitating instant and cost-effective transactions between financial institutions, much like Ripple's XRP.
However, VELO focuses heavily on partnerships with established banks and payment providers in Asia, ensuring real-world adoption and integration.
VELO has forged strategic alliances with prominent financial institutions, including Siam Commercial Bank (SCB) and UnionBank of the Philippines.
These partnerships allow VELO to enhance liquidity, streamline international money transfers, and provide secure, low-cost financial services across borders.
By addressing the inefficiencies of traditional banking systems, VELO is bridging the gap between digital finance and conventional banking, particularly in a region where remittances play a critical economic role.
Dig deeper into Velo whitepaper.
VELO Tokens
The VELO token serves as the backbone of the Velo ecosystem, designed to support blockchain-based financial solutions for cross-border payments.
Total Supply and Allocation
Total Supply: Fixed at 30 billion tokens.
Allocation Breakdown:
Ecosystem Growth (50%): Supports partnerships and network expansion.
Incentives (20%): Encourages adoption by banks and remittance companies.
Team and Advisors (15%): Reserved for long-term project sustainability.
Liquidity (10%): Ensures smooth trading and transactions.
Community Rewards (5%): Drives adoption through airdrops and promotions.
Utility
Collateral for Digital Credits: VELO tokens secure fiat-pegged digital credits used for cross-border transfers.
Transaction Fees: Paid in VELO for network operations.
Staking: Allows users to earn rewards and contribute to network security.
Governance: Enables token holders to vote on key decisions.
Deflationary Mechanism
A portion of tokens used in transactions is burned to reduce supply, maintaining value as adoption grows.
Circulation and Vesting
Tokens are released strategically to avoid market saturation, with team and advisor tokens locked and vested over several years.
How does Velo work?
VELO employs a dual-layered system comprising digital credits and the VELO token to facilitate transactions:
Digital Credits
Financial institutions and partners issue digital credits backed by VELO tokens. These credits represent stable, real-world value and can be used for transactions within the ecosystem.
Smart Contract Infrastructure
VELO's blockchain ensures secure, transparent, and automated transactions via smart contracts.
Interoperability
VELO’s protocol integrates seamlessly with multiple blockchain networks and traditional banking systems, enabling efficient cross-chain and fiat-to-digital asset transfers.
This innovative framework ensures cost efficiency, speed, and security for all participants.
Key Features and Use Cases
Cross-Border Payments
VELO simplifies international remittances by providing a fast and cost-effective alternative to traditional banking systems. It eliminates intermediaries, significantly reducing transaction fees and processing times.
Digital Credit Exchange
VELO allows financial institutions to issue digital credits backed by VELO tokens, ensuring stable and secure transactions across various financial services.
Smart Contract Automation
The platform’s smart contract technology ensures transparency and trust by automating processes, reducing the risk of fraud, and enhancing transaction efficiency.
Decentralized Finance Integration
VELO is expanding its reach into decentralized finance (DeFi), enabling users to participate in lending, staking, and yield farming, enhancing the utility of VELO tokens.
Compliance and Scalability
VELO ensures that its operations meet global regulatory standards, making it a reliable choice for institutional and enterprise adoption.
Technical Analysis
The crypto market has been dipping, as mentioned in our last market outlook.
This week, VELO found support around the $0.02 structure marked in green. As it retests this level, we will be looking for new long positions on lower timeframes.
As the next bullish phase begins, our first target or rejection zone will be around the $0.033 major high.
Why is VELO The Coin of the Week?
VELO stands out as a groundbreaking project that bridges the gap between traditional banking and blockchain technology.
With its extensive partnerships with major Asian financial institutions, such as SBI Remit and ThaiBank, VELO has earned the nickname “Thai XRP” for its focus on seamless cross-border payments.
From a technical analysis perspective, VELO has demonstrated resilience during this bearish phase, as it continues to trade within a long-term rising channel marked in blue.
Stay tuned for our upcoming Coin of the Week features, showcasing innovative projects revolutionizing the world of blockchain technology!
Thanks for tuning in to this week's coin of the week! We appreciate your readership and enthusiasm for exploring the crypto landscape with us.
See you next week for another coin of the week! 🚀
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