NEM Unveils Restructuring Plan To Ward Off Financial Difficulties
On February 1, we had reported that NEX (XEM) is facing financial difficulties and is planning to reorganize itself. Yesterday, the blockchain startup has announced a plan for both organizational and financial restructuring. The firm is facing a shortage of native XEM tokens that is crucial for operations.
On February 20, the foundation planned to send out 210 million XEM tokens ($ 8.7 million) from holdings, in which the first lot of 25 million ($ 1.04 million) will be utilized to “establish mechanisms and systems for NEM Foundation’s new product – focused, revenue – driven approach.” The fresh tokens are supposed to finance the initiatives of the NEM Foundation through February 2020.
The foundation will also evaluate some duties at the company in addition to rolling out new funding. The NEM Foundation allegedly encountered financial troubles due to obsolete roles, erratic metrics of success, little monetary accountability, and dubious profit on investment.
Per Friday’s announcement, the NEM Foundation will establish a “Task Force on Transformation” to work effectively on short-term plans besides the advancement of employee weekly and monthly reporting patterns and a scoring system to grade employee productivity.
While the foundation seemed to face the chances of huge layoffs in January, in addition to the existing Javascript and Java, the pronouncement states that SDK developers were employed to broaden their current SDKs to incorporate Python, PHP and Unity.
The NEM Foundation was established in 2017, two years after the XEM token was released, and is based in Singapore, according to the website. The motive of the establishment is to “introduce, educate and encourage all industries and institutions to use the NEM blockchain technology platform on an international scale.”
At press time, XEM is trading at $0.04329, down 4% in 24 hours, according to data from Coingecko.com. The token’s market capitalization is currently over $388.84 million.