The VeChain Foundation has published its first quarter report, indicating that its treasury had amassed $1.2 billion in cryptocurrencies at the end of the quarter, a slight decrease from $1.38 billion recorded in the fourth quarter of 2021 Surprisingly, the foundation behind VeChain only spent around 4.1 million in the first three months of 2022 – mostly on business development and operational costs.
Expenditure overshadowed by the Treasury Fund
According to report, the Foundation assured investors that its treasury was healthy, with more than $1.2 billion in assets in stablecoins, ETH, BTC and VET – the native token of VeChain. Regarding the loss compared to the last quarter, the report states that it was caused by “the fluctuations of the crypto market and other expenses of the VeChain Foundation”.
Of the $4.1 million spent in the first quarter, the Foundation dedicated $1.8 million to business development of the ecosystem. These included partnerships, custodians, wallet providers, brokers, community events and ecosystem project cooperation. This expense represents the highest amount spent during the quarter. The next was ecosystem operations which cost around $1.1 million.
Despite a remarkably well-managed balance sheet, the Foundation did not provide details of its earnings for the quarter. Transaction fees as split between validators and other stakeholders should have been a key source of its revenue, but no fee data was revealed in the report.
As a layer one blockchain designed to solve supply chain and sustainability issues, VeChain continues to expand its blockchain-based carbon management services for countries.
At the beginning of the week, the project announcement a partnership with Amazon Web Service (AWS) to build the VeCarbon emissions management software system as a service (SaaS) to serve China’s goal of carbon neutrality in 2060.
Earlier, the Foundation launched its first VeUSD stablecoin, developed by Stably and issued by Prime Trust, a Nevada-based trust company. Each VeUSD, fully backed by fiats, is pegged 1:1 to the USD. The report noted that $5,249,789 of the stablecoin had been minted by the end of the first quarter.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to receive up to $7,000 on your deposits.