NEM Foundation Reveals Its Project Roadmap After Receiving $8 Million in Funding

  • NEM Foundation, an organization focused on the ongoing development of the blockchain-based NEM platform, has revealed its roadmap for the next year.
  • The roadmap has been disclosed after the NEM Foundation announced in late January 2019 it was getting close to filing for bankruptcy.

The NEM Foundation, a non-profit entity focused on the ongoing development of the NEM (XEM) cryptocurrency platform, reportedly acquired $8 million in funding in February to help cover its business operations.

However, the NEM Foundation is also close to filing bankruptcy due to the prolonged crypto bear market which has seen the prices of most major digital assets drop by over 80%.

Last month, the NEM project’s team requested that 210 million XEM tokens (appr. $9 million) be released from reserves in order to fund the platform’s development. This request was reportedly approved on February 20 by members of the NEM community.

Getting Ready To "Pivot To A Very New Way Of Working"

On Friday (March 8), the NEM Foundation published a blog post in which it noted the project’s leaders decided on how the first installment of 25 million XEM (appr. $1.05 million) would be spent. Commenting on the NEM platform’s current business strategy, Alexandra Tinsman, the newly appointed NEM Foundation president, told CoinDesk:

I think this is a vote of confidence that the industry is moving forward and that we’re ready to pivot to a very new way of working.

During the historic crypto bull market, the market capitalization of the NEM platform’s XEM tokens had surged past $15 billion. It was also around this time that there were about 150 professionals on the NEM Foundation’s payroll and the organization’s operations expanded to 20 different countries across the globe.

However, due to the sharp decline in the valuations of most cryptocurrencies, including the market cap of all XEM tokens which is now below $400 million, Tinsman revealed that the NEM Foundation laid off around 100 of its staff members.

Preparing To Launch Catapult Blockchain Engine

As mentioned in last month’s funding proposal (published by the NEM Foundation), “88 staff (69%) will be made redundant” by the planned restructuring of the enterprise level, blockchain-focused development organization. According to Tinsman: 

It’s in the best interest of companies to be fiscally responsible with their platform, their products and their teams. We need to be product-focused and that’s what we’ve done. This is a sign of good things to come.

Notably, NEM’s management has also announced that it will soon be releasing the “Catapult blockchain engine,” which has reportedly been developed to enhance the performance of both private and public blockchain networks. Jeff McDonald, the interim chief technical officer (CTO) at the NEM Foundation, claims that “the tech itself is doing things that no other blockchain has done before.”

Introducing Sharp Budget Cuts Due To Mismanagement Issues

In January 2019, the NEM Foundation revealed it would be introducing substantial budget cuts “due to the mismanagement of [funds and resources by] the previous governance council.”

After being appointed as the NEM Foundation’s president, Tinsman had requested that additional funds be allocated from the organization’s reserves to cover the foundation’s day-to-day operational expenses. Approximately 90% of 573 NEM community members voted in favor of approving Tinsman’s request. As mentioned, the 210 million XEM allocated to the NEM project will be used to fund the blockchain organization’s operations until February 20, 2020.

Top-Tier Crypto Exchanges' Volumes Climb Back to One-Third of Total Market Share

The aggregate trading volume of top-tier cryptocurrency exchanges has increased by 61.2% during the month of January, while the volume of lower-tier crypto exchanges increased 46.4%.

According to CryptoCompare’s January 2020 Exchange Review, the trading volume of top-tier crypto exchanges – those rated AA-B according to its Exchange Benchmark – climbed last month to represent 29.3% of the total trading volume in the space.

The rise is significant as in December, the cryptoasset data provider’s report showed top-tier cryptocurrency exchanges were seeing their trading volumes drop as they lost market share to lower-tier crypto exchanges, those rated C-F. At the time, they represented 26.4% of the cryptocurrency market’s total trading volume.

top tier trading volumesSource: CryptoCompare Exchange Review

The report further found that exchanges that charge taker fees represented 76% of the total volume last month, while those that implement the controversial trans-fee mining (TFM) model represented 22%.

It also found that regulated bitcoin derivatives are still dominated by the CME, whose total trading volumes went up 145.6% since December. Grayscale’s Bitcoin Trust product (GBTC) saw its total trading volume rise 131% since December.

As for derivatives trading on cryptocurrency exchanges, in January OKEx represented the majority of daily derivatives volumes, trading $4.96 billion per day and capturing 31.1% of the total market share. Huobi traded $4.29 billion a day for 26.9% of it, while BitMEX traded $3.13 billion for 19.6%.

Pure crypto-to-crypto exchanges notably represented 75.4% of the market’s trading volume, in a similar proportion to the last two months. The stablecoin space, per the report, is still dominated by Tether’s USDT, as it still represents 94% of the total Bitcoin trading volume into the top four stablecoins.

Decentralized Exchanges Lose Trading Volume

CryptoCompare’s report also addresses decentralized cryptocurrency exchanges, noting IDEX was the largest one in January. It traded a total of $10 million as its trading volume went up 25.4%, and it was followed by Switcheo and Bitsquare. While these platforms’ volumes went up, DEXs as a whole have been losing volume.

dex CHARTSource: CryptoCompare Exchange Review

According to the report they have diminished 88% since early 2019 to now represent a small fraction of the global spot exchange volume. In January, decentralized trading platform traded $17.8 million in total, representing 0.003% of the market. In January 2019, for comparison, they traded $148 million.

Featured image via Unsplash.