The first quarter 2022 financial report released by the VeChain Foundation shows that the project has amassed an impressive $1.2 billion in funding, but only spent about $4.1 million this quarter.
VeChain (veterinary) is a blockchain project aimed at enhancing supply chain management.
Foundation May 10 Financial Report Report The first quarter of 2022 provides an overview of the balance sheet as of March 31 and capital expenditures for the quarter. Although the Treasury Department had $1.37 billion in stablecoin assets at the beginning of the year, Bitcoin (bitcoin), ether (Ethereum) and VET, which ended at $1.2 billion. The report stated that most of the losses were “due to crypto market volatility and other VeChain Foundation expenses.”
BTC prices are down 34%, ETH is down 36%, and VET is down 54% since December 31, 2021, when the project marked the start of its first-quarter tracking through March 31.
To maintain transparency regarding the company’s holdings and expenses #vechain Foundation, we are pleased to share our first quarter 2022 financial report:https://t.co/eJzc3NMBAx#smart contract #blockchain #finance #cryptocurrency #veChainThor $ veterinarian $ 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 spend. This includes partners, custodians, wallet providers, brokers, community events and ecosystem project collaborations.
Next is $1.1 million for ecosystem operations such as team costs, office space, utilities, consulting fees and external services.
While the report says the treasury will be used to “ensure the long-term development of the VeChainThor blockchain,” it is unclear whether the foundation will open the taps of its treasury to increase investment spending.
The report also didn’t mention how much money the foundation made in the first quarter. The VeChainThor blockchain charges fees for transactions that are distributed among validators and other stakeholders in the ecosystem. However, the data on total accrued expenses is not clear in the financial report.
VeChain’s carbon emissions data management system and VeChain’s collaboration with cement industry players were announced in the earnings report.
Related: VeChain Available as a Payment Method in 2 Million Stores – VET Bridges to BNB Chain
During the first quarter, VeChain launched its own stablecoin Via a stablecoin issuer called VeUSD. It also entered into a partnership with Amazon Web Services (AWS) to build the VeCarbon emissions management software-as-a-service (SaaS) system for China.
With a market cap of $2.6 billion, VET has lost about 0.6% in the past 24 hours to trade at $0.04, according to Coingecko data data.