Major Cryptocurrency Project NEM Has Just “One Month Left of Funding”
NEM Foundation, the developer of the NEM blockchain platform stated that they are under a critical financial crunch, with just “one month left of funding” to keep the organization afloat. In saying so, the foundation also claims that they “can solve this.”
The top management team of the NEM Foundation formed a new council just a month ago. Judging by the update, published Thursday morning the council was surprised to see that the current organizational structure of the Foundation offered “little accountability for funds and questionable ROI ”
Reportedly, the firm has had a burn rate of 9 million XEM tokens per month just to keep the organization running. The council sees this as an unsustainable situation. At the current exchange rate, 9 million XEM is equivalent to USD 416,700.
The newly elected president of the Singapore-based NEM Foundation, Alexandra Tinsman, is planning layoffs, budget cuts, and restructuring in order to save itself from bankruptcy. The foundation works as a grant-funded non-profit.
As per Tinsman, “due to the mismanagement of the previous governance council,” the foundation has around a month’s runway left. A funding request for 160 million XEM tokens (approximately $7.5 million) has been submitted by Tinsman to the NEM community. So now a voting session in February will decide the company’s future and the extensity of the layoffs for its 150-strong staff.
The new council has reportedly restructured the entire organization and have eliminated the regional teams that were aimed at promotional work. These teams are being replaced by newly created product-focused teams, as mentioned in the update.
Tinsman further added that she’ll prioritize a tight budget for 2019 and the decision-making process will also include the 202-member community. In order to reduce the dependency of the NEM Foundation on grants, she is planning to monetize through “enterprise training and affiliate marketing,” according to Coindesk.
On the launch of Catapult, their latest technology update, the team said:
“NEM’s technology is still among the best for developers looking to build business applications, and our new focus is going to push us even further ahead in the industry. will revolutionize blockchain’s future.”
The native XEM token of the NEM blockchain project is currently positioned as the 18th largest cryptocurrency, according to market capitalization. Launched in 2015, the blockchain has seen several innovations in the space, including a proof-of-importance (POI) algorithm and encrypted messages.
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