NEM Foundation is on the verge of bankruptcy, what's next?

[Paha87]

The NEM Foundation, a community-funded non-profit organization created to promote the NEM blockchain, plans to lay off all of its 150 employees due to severe budget cuts and in anticipation of the upcoming restructuring.

Current position

The recently elected President of the organization, Alex Tinsman, reported that the Singapore-based NEM Foundation now intends to apply for funding to the NEM community Fund for 160 million tokens (worth approximately $ 7.5 million) to be used to save the organization from bankruptcy.

According to CoinMarketCap, there are now 9 billion NEM tokens listed under the xem Ticker in circulation. Currently, XEM is the 18th largest cryptocurrency in the world by market capitalization. In an interview, Tinsman, who took office in January, said:

In fact, we realized that we had a month to work, because of the poor management of the previous Board.

As a result, 202 members of the Foundation - people who pass identity verification and pay an annual membership fee of $ 50 - will be invited to vote on the funding request in February after this publication. According to Tinsman, the number of layoffs will depend on the amount of funding approved by the community.

Misappropriation and "breach of faith»

The xem token was released in 2015 under the leadership of the former President of the LON Wong Foundation. Cryptocurrency is mainly used for transactions and service fees in the NEM blockchain. The full launch of the platform's own engine software called Catapult is scheduled for June 2019.

Meanwhile, NEM pilot projects have often focused on use cases such as voting. Indeed, Tinsman herself was elected in a process that used the NEM platform.

According to Tinsman, in the period from December 2017 to January 2019, the Fund spent about 80 million euros, mainly on marketing. Wong did not respond to requests for comment on the Fund's spending, and the new President pointed out:

We have reduced marketing activities, because it makes no sense to bring to market a product [Catapult], which is not yet available.

According to a long-time NEM user, a developer who asked to remain anonymous because he worked directly with past guidance, Wong faltered when he used his visibility in the Fund to promote "sketchy" initial coin offerings such as Ecobit and ProximaX.

According to reports, in 2018, the sale of ProximaX tokens attracted more than $ 33 million, and Wong is listed on the company's website as the CEO. An anonymous developer said that " the community found this a violation of faith," adding that there is still a lot of work to be done to encourage developers like him to actually use the blockchain.

Restructuring plan

Tinsman, the former head of communications at the Foundation before 148 registered members elected her to lead the nonprofit, is embarking on a much more disciplined roadmap for 2019. She said teams would be given specific budgets and they would have to execute more open source documentation of their tools to build progress for the NEM ecosystem.

"The community will also vote on these [funding requests] and on which ones we should move forward," she said. Tinsman also described the restructuring as a "positive step," adding:

I'm really curious that NEM has a strong Toolbox and community that is moving forward to change the future. And now we can give them considerable support.

Tinsman also plans to monetize the Foundation's activities in 2019, including enterprise training and affiliate marketing, to reduce the dependence of nonprofits on community grants.

LINK - https://altstake.io/news/nem-foundation-na-grani-bankrotstva-chto-dalyshe