The VeChain Foundation has published its financial report for the first quarter of 2022in which it is shown that the project obtained an impressive $1.2 billion funding pool, but only spent about $4.1 million in the quarter.
VeChain is a blockchain project designed to improve supply chain management.
The Foundation’s financial report released Tuesday for the first quarter of 2022 outlines its balance through March 31 and how it spent funds during that period.. Although the treasury opened the year with $1.37 billion in assets across stablecoins, Bitcoin (BTC), Ether (ETH), and VeChain (VET), it ended the quarter with $1.2 billion. The report states that most of the losses occurred “due to cryptocurrency market fluctuations and other VeChain Foundation exits.”
BTC price is down 34% since then, ETH is down 36% and VET is down 54% since Dec 31, 2021when the project marked the start of its first-quarter tracking through March 31.
In the interest of continued transparency relating to the holdings and expenditures of the #VeChain Foundation, we are happy to share the Q1 2022 Financial Report:https://t.co/eJzc3NmBAx#SmartContracts #Blockchain #finance #Cryptocurrency #VeChainThor $VET $VTHO
— VeChain Foundation (@vechainofficial) May 10, 2022
In the interest of continued transparency related to #VeChain Foundation holdings and expenses, we are pleased to share the Q1 2022 financial report.
Of the $4.1 million disbursed in the first quarter, the Foundation spent $1.8 million on ecosystem business development, which was the largest expense. That includes associations, custodians, wallet providers, brokers, community events, and ecosystem project cooperation.
Next was $1.1 million in ecosystem operations, such as equipment costs, office space, utilities, consulting fees and outside services.
Although the report states that the treasury will be used to “ensure the long-term development of the VeChainThor blockchain”, it is unclear whether the foundation will open up the contents of its treasury for further investment spending.
The report also does not indicate how much money the Foundation has earned up to the first quarter. The VeChainThor blockchain collects transaction fees that are distributed among validators and other stakeholders in the ecosystem. However, the financial report does not show data on the total amount of accumulated commissions.
VeChain’s carbon emission data management system and VeCarbon’s partnership with cement industry players were announced in the financial report.
During the first trimester, VeChain He launched its own stablecoin through stablecoin issuer Stably, known as VeUSD. He also formed a partnership with Amazon Web Service (AWS) to build VeCarbon emissions management software-as-a-service (SaaS) system for China.
VET has a market capitalization of $2.6 billion and is down 0.6% in the last 24 hours, trading at $0.04, according to data from CoinGecko.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.