VeChain treasury held $1.2B in crypto, according to the Q1 report states
The VeChain Foundation has released its first-quarter report, revealing that its treasury held $1.2 billion in cryptocurrency at the conclusion of the quarter, a tiny decline from the $1.38 billion held in the fourth quarter of 2021. Surprisingly, the foundation behind VeChain spent only about 4.1 million in the first three months of 2022 — largely on business development and operational expenses.
According to the report, the Foundation informed investors that its treasury was in good shape, with over $1.2 billion in assets in stablecoins, ETH, BTC, and VET — VeChain’s native token. According to the report, the deficit relative to the previous quarter was caused by “the fluctuations of the crypto market and other expenses of the VeChain Foundation.”
The Foundation allocated $1.8 million of the $4.1 million spent in the first quarter on ecosystem business development. Partnerships, custodians, wallet providers, brokers, community events, and ecosystem project collaboration were among them. This was the most expensive expense throughout the quarter. The next step was ecosystem operations, which cost approximately $1.1 million.
Despite a surprisingly well-managed cash sheet, the Foundation did not disclose its quarterly results. Transaction fees distributed among validators and other stakeholders should have been a major source of revenue. However, no fee information was provided in the report.
VeChain continues to grow its blockchain-based carbon management services for governments as a layer one blockchain meant to solve supply chain and sustainability challenges. The initiative announced cooperation with Amazon Web Service (AWS) earlier this week to construct the VeCarbon emissions management software-as-a-service (SaaS) solution to support China’s 2060 carbon-neutral objective.
Previously, the Foundation released its first VeUSD stablecoin, which was created by Stably and distributed by Prime Trust, a Nevada-based trust corporation. Each VeUSD is completely backed by fiat currency and is tied 1:1 to the USD. The stablecoin had been coined for $5,249,789 by the end of the first quarter, according to the study.
VeChain is also a cryptocurrency project that has gained great community trust. Currently, VeChain is trading at $0.0313, up 0.65% on the day and decrease 30.95% in the last week, with a total market cap of $2.67 billion, according to CoinCu statistics.
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