While some cryptocurrency startups and Initial Coin Offerings (ICOs) are rooted in ambiguous terms and confusing jargon, some startups seem to have an inherent technical barrier that keeps many from entering the company’s growing pool of investors. By and by, this is bad for the general cryptocurrency and blockchain community.

As more investors in the traditional sector move into the crypto space, it is incredibly important that companies on the blockchain begin to unpack their products and platforms in a way that the common investor can begin to comprehend.

One organization starting to experience this issue is the VeChain Network. This blockchain startup has already undergone some significant changes to its structure, which has only compounded the kind of confusion that some participants in the crypto market have voiced regarding to the general project. In particular, there is significant confusion concerning two separate currencies which both interact with the network, the VET token and the THOR token.

Before investors jump into the exciting project with their own precious crypto and fiat funds, it is important to understand the difference between the tokens, both of which are essential to the kind of network that VeChain is trying to facilitate for its growing ecosystem.

The THOR Token functions as the facilitator of the backend processes which drive the VeChain ecosystem. The token is referred to as the secondary currency of the system, and its primary purpose is to allow business operations on the chain to run as efficiently as possible. The THOR tokens are distributed to owners of the VET tokens in exchange for them choosing to stake coins in the mining process essential to the overall network.

THOR is also the token that the VeChain team places the most faith in when it comes to overall value stability. The coin is not connected to the USD dollar, as is the case with many stablecoins currently in the crypto space. However, the startup has claimed that they plan to implement several mechanisms to closely respond to supply and demand in order to maintain relative stability in the coin’s value.

By contrast, the VET token’s purpose is to serve as the primary token on the VeChain main net. The token is used to stake and run masternodes, which is an important everyday process for users on the chain. The token, though, has its limitations. The VET token does not help to power the operations which underscore and back up the chain itself.

VET is unlikely to have the price stability of the THOR token. For some investors, this means that VET is the token to invest in for a short-term or long-term profit of significance. Though there is debate on whether the coin will actually rise in value over time, the general consensus among holders is that its role in the staking and masternode structure of VeChain will allow the coin to see an ascent in value as the chain develops and expands.

Though it might be confusing, this is not the end of the development road for members of the VeChain team. Moving forward, the team continues to work to make the technology and its meanings more accessible to a population increasingly consisting of non-institutional and often laymen investors.

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