VeChain Foundation revealed an impressive ware chest worth $1.2B in its 2022 quarter 1 reports but reported spending of a mere $4.1M in this quarter. This blockchain project is designed to augment the management of supply chains.
The fiscal report for the Foundation in the first quarter outlines the balance sheet for the quarter ending March 31, 2022. VeChain, the blockchain project, has been designed to boost supply chain administration.
VeChain’s fiscal report for the first quarter of this year released on Tuesday outlines the Foundation’s balance sheet for the quarter ending March 31. It details its spending of funds throughout the quarter.
Market Fluctuation Key Reason For VeChain Losses
Even though the treasury started 2022 with assets worth $1.37B divided between Ether (ETH), VeChain (VET), and Bitcoin (BTC), the end of the quarter saw assets worth $1.2B with the company.
The report detailed that the maximum losses were due to the fluctuations in the crypto market and other outgoings of the VEChain Foundation.
Since then, Bitcoin is down 34%, while Ether is down 36%. The foundation has dropped 54% since the beginning of the year. It was the time when this project indicated the commencement of its tracking for quarter one through end-March.
Out of the total $4.1B that was outlaid in Quarter 1, the foundation developed its ecosystem business, spending $1.8M. it was the single highest expense. The development includes brokers, community events, custodians, partnerships, wallet providers, and community events.
Another expense was $1.1M on the ecosystem operation which includes office space, team costs, external services, and consulting fees. Even though the report details that treasury funds would be utilized to ensure long-term developments of VeChainThor, it remains unclear if the foundation will open its coffers for greater expenditure on various investments. There is also no clarity on the amount earned by the Foundation in the 1st quarter.