VeChain had $1.37 billion in Treasury but it dropped to $1.2b in Q1; Why?

Paigambar Mohan Raj
Source: Cryptopolitan

The sixteenth VeChain Foundation Financial Executive Report, covering the period from January 2022 to the end of March 2022, was published yesterday.

VeChain’s opening balance was $1,373,691,155 in January 2022, but it has since dropped to $1,215,793,249, and as per the report, this is due to the crypto market changes and other VeChain Foundation expenses. The assets owned were distributed between Bitcoin (BTC), Ethereum (ETH), VET, and stablecoins.

Source: VeChain

The report says that the VeChain Foundation aims to develop its VeChainThor blockchain using its “healthy financial position”.

One of the major focuses of the first quarter of 2022 was VeChain’s European Expansion. Antonio Senatore, VeChain’s Head of Sustainable Development Goals (SDG), has been leading expansion efforts through the company’s new technology center in Ireland, with a goal to hire 100 additional technical professionals to dramatically expand their capabilities on the European mainland.

As per the report, VeChain had $4.1 million in expenses in Q1 of 2022. The highest cost, of $1.8 million, was spent on ecosystem business development. Ecosystem operations, on the other hand, cost $1.1 million, which included team wages, office space, electricity, consulting fees, and external services.

Source: VeChain

During the first quarter of 2022, VeChain also launched its first stablecoin, namely VeUSD. VeUSD was developed by Stably, onboarded by CREAM, and with stablecoins issued by Prime Trust, a Nevada-chartered trust corporation from the United States. Each VeUSD is completely backed by actual fiat money reserves, which may be redeemed at any moment at a 1:1 ratio.

The company’s carbon emissions data management system and VeCarbon’s partnership with cement industry players were announced in the financial report. It also formed a partnership with Amazon Web Service (AWS) to build the VeCarbon emission management software as a service (SaaS) system for China. They also announced the development of emission reduction methodologies and digital systems to enhance and drive circular economics.

However, the report has not mentioned the company’s earnings in Q1 of 2022. The VeChainThor blockchain collects transaction fees, which are divided into validators and other ecosystem players. The financial report does not include information on the overall amount of fees collected.