The NEM Foundation, a non-profit organization created to promote blockchain-NEM, plans to lay off workers due to serious budgetary problems, as reported by CoinDesk news agency.
On January 30, the new president of the NEM Foundation, Alex Tinsman, announced the possible dismissal of the entire staff. Today, more than 150 people are employed in the Singapore office of the NEM Foundation. The main reason for the possible wave of layoffs is the financial problems of the Fund.
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The bankruptcy of the NEM Foundation
Alex Tinsman also said that due to the unstable position of the cryptocurrency market and the illegal actions of the organization’s past leader, the Foundation is threatened with bankruptcy. To improve the financial situation, the President of the NEM Foundation announced its intention to seek help from the cryptocurrency community of the coin and the NEM platform. To restore work, the Fund needs about $ 7.5 million (160 million tokens).
According to CoinMarketCap, NEM tokens operate under the XEM ticker with a turnover margin of 9 billion. Currently, XEM is the 18th largest cryptocurrency in the world, according to market capitalization indicators.
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"In essence, we realized that we had no more than a month left to work normally (...) due to the poor management of the previous board of directors"
According to Tinsman, between December 2017 and January 2019, the Foundation spent about 80 million euros on marketing the future of the Catapult project. According to the opinion of the new President of the Foundation, there was no point in spending money on a product that does not yet exist.
"We have reduced marketing activities because it makes no sense to launch a product (Catapult) that is not yet available"
At the end of his statement, Tinsman added that the number of layoffs in the Foundation will depend on the amount of funding approved by the NEM directory. Voting on the support of the crypto-Foundation will take place with the participation of all investors in the community who pay contributions (at the time of 2019, there are 202 people). The possible date of the vote is still unknown.
The newly appointed president of the NEM Foundation has announced that they may become bankrupt. Recall that the XEM tokenToken
– is an accounting unit that is used to represent a digital balance in an asset.Details from NEM was released in 2015 under the leadership of Lon Wong, the former president of the Foundation. A full launch of the platform software called Catapult is scheduled for June 2019.
Editor: Pereyidenko Ihor