Blockchain asset management platform NEM announced it had completely reformed its non-profit NEM Foundation amid financial difficulties in an announcement Jan. 31.
The Foundation, which previously had a budget with a monthly burn rate of 9 million XEM, now plans to spend less than half that amount, as a new streamlined entity aims to cut costs.
"The NEM Foundation has restructured to eliminate regional teams and replace them with newly created product-focused teams," the announcement explained.
Summarizing the changes, NEM confirmed that the "NEM Foundation you knew before is gone."
The impetus for the changes reportedly comes from a lack of funding and criticism of spending under the old Foundation model.
XEM, the company said, had a difficult year in 2018, losing a significant portion of its value against previous highs as part of the ongoing cryptocurrency bear market.
"The XEM exchange rate has suffered catastrophic drops from this time a year ago, just as many other ambitious cryptocurrency projects have suffered, now the NEM Foundation is facing challenging budget decisions."
XEM/USD is trading around $0.044 at press time, dropping over 8 percent on the day following the publication of the news.
The pair hit an all-time high of $1.90 in early January 2018.
Later that month, the token was implicated as a target in a hack of Japanese cryptocurrency exchange Coincheck, which saw funds worth over $530 million at the time disappear.
NEM Reorganizes Non-Profit Foundation Amid Token Price and Funding Woes
gepubliceerd op Jan 31, 2019
by Cointele | gepubliceerd op Coinage
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