VeChain Foundation Reports Strong $1.2B Treasury And Low Expenses• May 11, 2022 9:23 pm • Comments
VeChain is currently regarded as the blockchain of choice when it comes to disrupting the supply chain industry and has already proven itself with many successful real world use cases.
The VeChain Foundation has also recently revealed that it has a strong balance sheet which currently has $1.2B in its treasury.
With such a strong financial cushion, the firm clearly has all the resources that it needs to continue to pursue the necessary partnerships and projects that would accelerate the blockchain’s growth.
Perhaps what was even more impressive is the fact that the foundation only spent about $4.1 million in the first quarter of 2022.
This means that VeChain is able to achieve impressive organic growth without much expenditure which means that the remaining funds can be used strategically.
The war chest remains locked.
Despite amassing an impressive $1.2 billion crypto treasury, @vechainofficial only spent about $4.1 million in the quarter.
— Cointelegraph (@Cointelegraph) May 11, 2022
VeChain is a layer-1 blockchain project designed to enhance supply chain management, and that supports decentralized apps (Dapp), decentralized finance (DeFi), and nonfungible tokens (NFT).
The Foundation’s Tuesday financial report for Q1 2022 outlines its balance sheet as of March 31and how it spent funds through the quarter. Although the treasury opened the year with $1.37 billion in assets between stablecoins, Bitcoin (BTC), Ether (ETH) and VeChain (VET), it ended the quarter with $1.2 billion.
The report states that most of the losses were incurred “due to crypto market fluctuations and other VeChain Foundation outgoings.”
The BTC price has fallen 34% since, ETH has fallen 36% and VET has fallen 54% since December 31, 2021, when the project marked the beginning of its Q1 tracking through March 31.
Out of the expenses that did occur, the most that the blockchain firm spent on was $1.8 million on ecosystem development.
These would be the things that drive the most direct impact on growth such as partnerships, new projects within VeChain’s ecosystem, and additional wallet providers.
The foundation has stated that the treasury will continue to be used to drive long term development of the VeChain blockchain, but has not revealed the timeline of how it will use its funds to achieve that.
So far, it is clear that VeChain is getting tremendous value out of the existing expenditures that is has by being able to land a partnership with AWS, having big industry players use its VeCarbon platform, and also launching its own stable coin called VeUSD.
VeChain Foundation Has A $1.2 Billion Crypto Treasury But Spent Only $4 Million in the First Quarter 2022#crypto #cryptocurrency #bitcoin #nft #nftscommunity #cryptonews #news #altcoin #ethereum #solana #blockchainhttps://t.co/RVQVcjbPiw pic.twitter.com/FHgjXT0cHH
— coinseek (@coinseekme) May 11, 2022
VeChain’s carbon emissions data management system and VeCarbon’s partnership with cement industry players were announced in the financial report.
During the first quarter, VeChain launched its own stablecoin through the Stably stablecoin issuer known as VeUSD.
It has also formed a partnership with Amazon Web Service (AWS) to build VeCarbon emissions management software as a service (SaaS) for China.
VET has a market cap of $2.6 billion and is down around 0.6% in the past 24 hours, trading at $0.04 according to Coingecko data.
Despite strong financial performance, the supply chain blockchain project’s native token VET has recently experienced a bearish trend in correlation with the overall crypto market slump.
JUST IN: Vechain Foundation ($VET) has reported a $1.2 billion treasury.
— Watcher.Guru (@WatcherGuru) May 11, 2022
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.