Cryptocurrency

NEM Foundation Undertaking a Fundraising Activity

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The NEM Foundation which is the maker of the NEM blockchain platform has revealed its funding proposal for the current year. If approved, the company will have to make changes in its core and the foundation itself to be able to create product-focused teams in the organization. But the news of the proposal has not affected the falling XEM token value. Its value has dropped by 9% within the past 24 hours.

The volume of funding NEM is willing to raise 210 million XEM which is worth around USD 8 million, and it will help in operations of NEM Foundation for one year to come. The funding will be used to deploy a new business structure into the framework. The company will be reducing 64.05% in last year’s expenses budget spend, and it is cutting 69% in staff size too.

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These steps are being taken by the company to fit into the present market situation. NEM is not the only crypto related organization doing this Many large businesses are also cutting expenses and workforce to be able to survive in the market.

The company has stated in the proposal that the amount of the fund it will own will depend mainly on the performance of the market. If the price of XEM goes down, the company will have to cut the staff volume and the ventures it is involved into. It has been a positive thing that the company has not been hiring people aggressively since the beginning. The company wants talent which would be helping in progressing with technology and projects which can bring revenue and not cause excess burden.

The proposal also mentioned that if the price of the XEM tokens goes up, the company would be able to send fiat money into the banks which can help the company sustain for a more extended period of time. However, the company will not be able to raise the salary of employees. Every revenue earned by the company would specifically e dedicated to the projects and activities which would boost more revenue. Rapid selling is something the company would not wish to do as it would hurt XEM’s price.

Salaries will be a mix of fiat and XEM. We will liquidate as necessary, with priority for the first three months. After that we will make responsible decisions based on financial analysis,” the Foundation said.

So far, there are decidedly fewer funds available at the disposal of the company which can be used to sustain its operations. The company has suspended a few areas of services. The new face of the company would be community-based. It will be all about the community-driven facilities like Governance, Sustainability and reflecting the values of the community.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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