NEM Foundation Asks Community for $7.5 million Bailout
The NEM Foundation, an organization created to popularize the NEM cryptocurrency, on the verge of bankruptcy. It plans to massively cut staff and also wants to ask $7.5 million from the community to improve its financial health.
The president of the NEM Foundation Alex Tinsman told CoinDesk, a non-profit organization plans to lay off some of 150 employees worldwide and cut costs. The organization will also seek help from the NEM community fund, from which it plans to receive 160 million XEM tokens or about $7.5 million at current prices.
These measures will allow the organization to prevent bankruptcy and maintain its activities. Now the organization has 202 members. They will have to vote for the proposed measures next month.
According to Tinsman, now the NEM Foundation has money only for one month of activity and this is the fault of the past ineffective leadership. In particular, from December 2017 to January 2019, the ex-board of directors spent 80 million XEM on advertising an unfinished NEM product called Catapult.
The launch of Catapult is scheduled for June of this year. Tinsman believes that advertising an unfinished product is meaningless. Therefore, the organization has reduced spending on marketing.
In addition this year, Tinsman wants to introduce more rigorous reports on the activities of the NEM Foundation and monetize the work of the organization. For example, the organization plans to conduct training and conclude an affiliate partnership with other companies.