Business

VeChain Foundation reports $1.2 billion crypto treasury…but only spent $4 million in Q1

Photo of Fry Electronics Team Fry Electronics Team2 weeks ago
0
VeChain Foundation reports $1.2 billion crypto treasury...but only spent $4 million in Q1

The VeChain Foundation has released its Q1 2022 financial report showing that the project amassed an impressive $1.2 billion war chest but only spent about $4.1 million in the quarter.

VeChain (VET) is a blockchain project to improve supply chain management.

The foundation’s financial report dated May 10 for the first quarter of 2022 outlines its balance sheet as of March 31 and how it spent funds during the quarter. Although the Treasury opened the year with $1.37 billion in assets between stablecoins, bitcoin (BTC), ether (ETH) and VET, it ended with $1.2 billion. The report states that most of the losses came “due to fluctuations in the crypto market and other expenses from the VeChain Foundation.”

BTC price has since fallen 34%, ETH 36%, and VET 54% since December 31, 2021, when the project marked the start of its Q1 tracking through March 31.

Of the $4.1 million spent in the first quarter, the foundation spent $1.8 million on ecosystem business development, which was the highest spend. This includes partnerships, custodians, wallet providers, brokers, community events, and collaborating on ecosystem projects.

blank
Treasury of the VeChain Foundation from Q1 2022

Next was $1.1 million for ecosystem operations such as team expenses, office space, utilities, consulting fees, and outside services.

While the report notes that the treasury will be used to “ensure the long-term development of the VeChainThor blockchain,” it’s unclear if the foundation will open the faucet of its treasury to more investment spending.

blank
VeChain Foundation spending until Q1 2022

Also missing from the report is how much money the foundation earned in the first quarter. The VeChainThor blockchain charges fees for transactions that are distributed between validators and other stakeholders in the ecosystem. However, the financial report does not provide information on the total amount of fees accrued.

VeChain’s CO2 emissions data management system and VeCarbon’s partnership with cement industry players were announced in the financial report.

Connected: VeChain can be used as a means of payment in 2 million stores – and VET can be bridged with the BNB chain

In the first quarter, VeChain introduced its own stablecoin via stablecoin issuer VeUSD. It also partnered with Amazon Web Service (AWS) to build the VeCarbon emissions management software-as-a-service (SaaS) system for China.

VET has a market cap of $2.6 billion and is down about 0.6% in the past 24 hours to trade at $0.04, according to Coingecko data.