The VeChain Foundation has released its financial report for the first quarter of 2022, showing that the project earned an impressive $1.2 billion in war chests, but only spent $4.1 million in the quarter.
VeChain (VET) is a blockchain project designed to enhance supply chain management.
The foundation’s May 10 financial report for Q1 2022 outlines its balance sheet as of March 31 and the way it spent funds during the quarter. Although Treasury opened the year with $1.37 billion in assets among stablecoins, bitcoin (BTC), ether (ETH) and VET, it ended with $1.2 billion. The report states that most of the losses were “due to volatility in the cryptocurrency market and other expenditures by the VeChain Foundation”.
The price of BTC is down 34% since December 31st, 2021, ETH is down 36%, and VET is down 54% when the project marked the start of its Q1 tracking through March 31st.
In the interest of continued transparency regarding the holdings and expenditure of #vechain Foundation, we are pleased to share the financial report for the first quarter of 2022:https://t.co/eJzc3NmBAx#smartcontracts #blockchain #finance #cryptocurrency #vechenthor $vet $VTHO
— Vechain Foundation (@vechainofficial) 10 May 2022
Of the $4.1 million spent in the first quarter, the foundation spent $1.8 million on ecosystem business development, which was the largest spend. This includes partnerships, custodians, wallet providers, brokers, community events, and ecosystem project collaborations.
This was followed by $1.1 million on ecosystem operations such as team costs, office space, utilities, consulting fees and outside services.
Although the report states that the Treasury will be used to “ensure the long-term growth of the VeChainThor blockchain”, it is unclear whether the foundation will tap its treasury to spend more on investments.
Also absent from the report is how much money the foundation made in the first quarter. The VeChainThor blockchain collects fees for transactions that are distributed among validators and other stakeholders in the ecosystem. However, the data on the total amount of charges accrued is not clear from the financial reports.
VeChain’s carbon emissions data management system and WeCarbon’s partnership with cement industry players were announced in the financial report.
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During Q1, VeChain launched its own stablecoin Through a stablecoin issuer called VUSD. It also formed a partnership with Amazon Web Service (AWS) to build VeCarbon emissions management software as a service (SaaS) system for China.
According to data from Coingecko, VET has a market cap of $2.6 billion and is down about 0.6% over the past 24 hours, trading at $0.04.
