The VeChain Foundation has released its financial report for the first quarter of 2022, showing that the project has raised an impressive $1.2 billion warbox, but only spent about $4.1 million in that quarter.
VeChain (VET) is a blockchain project designed to enhance supply chain management.
Foundation’s May 10 Finances report Q1 2022 describes the balance sheet as of March 31 and how funds were used during the quarter. The Treasury opened the year with $1.37 billion in assets between stablecoins, Bitcoin (BTC), Ether (ETH) and VET, but closed at $1.2 billion. According to the report, most of the losses were “due to fluctuations in the cryptocurrency market and other VeChain Foundation spending”.
Since December 31, 2021, when the project marked the beginning of Q1 tracking through March 31, the price of BTC has fallen by 34%, ETH by 36% and VET by 54%.
For continued transparency regarding holdings and spending #vechain Foundation, we are delighted to share our Q1 2022 financial report.https://t.co/eJzc3NmBAx#smart contract #blockchain #Jae Won #cryptocurrency #vecheintor $VET $VTHO
— VeChain Foundation (@vechainofficial) May 10, 2022
Of the $4.1 million spent in the first quarter, the Foundation spent $1.8 million on ecosystem business development, the highest cost. This includes collaborations with partnerships, custodians, wallet providers, brokers, community events and ecosystem projects.
Next was $1.1 million for ecosystem operations such as team expenses, office space, utilities, consulting fees, and external services.
The report states that the Treasury will be used to “ensure the long-term development of the VeChainThor blockchain”, but it is unclear whether the foundation will open the Treasury’s faucet for further investment spending.
The report also doesn’t show how much money the foundation made during the first quarter. The VeChainThor blockchain collects fees for transactions that are distributed between validators and other stakeholders in the ecosystem. However, data on the total amount of fees accrued are not clear from the financial reports.
VeChain’s carbon emission data management system and VeCarbon’s partnership with cement industry officials were announced in a financial report.
RELATED: VeChain can be used as payment in 2M stores and VET is linked to the BNB chain.
During the first quarter, VeChain stable coin Through a stable stablecoin issuer known as VeUSD. We also partnered with Amazon Web Service (AWS) to build a VeCarbon emission management Software as a Service (SaaS) system for China.
VET has a market cap of $2.6 billion, down about 0.6% in the last 24 hours, and trading at $0.04, according to Coingecko. data.