The VeChain Foundation has released its Q1 report, stating that its treasury amassed $1.2 billion worth of crypto at the end of the quarter, a slight drop from the $1.38 billion recorded in Q4 2021. Surprisingly, the foundation behind VeChain only spent approximately 4.1 million during the quarter. first three months of 2022, primarily for business development and operating costs.
Expenditures shadowed by the Treasury Fund
According to the report, the Foundation assured investors that its treasury was in a healthy state, with more than $1.2 billion in assets held in stablecoins, ETH, BTC, and VET, VeChain’s native token. Regarding the loss compared to last quarter, the report says that it was caused by “crypto market fluctuations and other VeChain Foundation expenses.”
Of the $4.1 million disbursed in the first quarter, the Foundation spent $1.8 million on business development of the ecosystem. These included associations, custodians, wallet providers, brokers, community events, and cooperation on ecosystem projects. This expense represented the largest amount spent in the quarter. Next up was the ecosystem operations which cost about $1.1 million.
Despite the impressively well-managed balance sheet, the Foundation did not provide details on its revenue for the quarter. Transaction fees distributed among validators and other stakeholders should have been a critical source of their revenue, but no fee-related data was disclosed in the report.
As a layer one blockchain designed to address issues in supply chain and sustainability, VeChain continues to expand its blockchain-based carbon management services for countries.
Earlier this week, the project announced a partnership with Amazon Web Service (AWS) to build the VeCarbon emissions management software-as-a-service (SaaS) system to meet China’s 2060 carbon neutrality goal.
Previously, the Foundation launched its first VeUSD stablecoin, developed by Stably and issued by Prime Trust, a Nevada-based trust company. Each VeUSD, fully backed by fiat, is pegged 1:1 to the USD. The report noted that $5,249,789 worth of the stablecoin had been minted by the end of the first quarter.
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This post VeChain Treasury Held $1.2 Billion in Crypto, According to Q1 Report
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