The VeChain Foundation has released its financial report for Q1 2022, revealing that the project accumulated $1.2 billion in crypto treasury but only spent $4.1 million owing to low expenditures throughout the quarter.
The Foundation’s financial report for Q1 2022, released on May 10, details its balance sheet as of March 31 and how monies were used throughout the quarter.
The Treasury started the year with $1.37 billion in assets spread over stablecoins, Bitcoin (BTC), Ether (ETH), and VET, but by the end of the year, it had only $1.2 billion.
The majority of the losses were sustained “due to crypto market fluctuations and other VeChain Foundation outgoings,” according to the study.
Since December 31, 2021 to May 31, 2022, when the project began recording its first quarter, the price of bitcoin has dropped 34%, the price of ether has dropped 36%, and the price of VET has dropped 54%.
The Foundation spent $1.8 million on ecosystem business development, which was the biggest expense of the $4.1 million invested in the first quarter.
Partnerships, custodians, wallet providers, brokers, community gatherings, and ecosystem project collaboration are all examples of this.
The next $1.1 million was spent on ecosystem operations, which included team costs, office space, electricity, consulting fees, and outside services.
The treasury will be used to “guarantee the long-term development of the VeChainThor blockchain,” according to the report, but it is unclear whether the foundation would open the tap on its treasury for more investment expenditures.
The amount of money the Foundation made in the first quarter is also not included in the report. The VeChainThor blockchain collects transaction fees, which are divided into validators and other ecosystem players. However, the financial report does not include information on the overall amount of fees owed.
The financial report announced VeChain’s carbon emissions data management system and VeCarbon’s relationship with cement industry players.
During the first quarter of 2018, VeChain introduced its own stablecoin, VeUSD, through the Stably stablecoin issuer.
It also partnered with Amazon Web Services (AWS) to develop a VeCarbon pollution management software as a service (SaaS) system for China.
According to Coingecko data, VET has a market worth of $2.6 billion and is down roughly 0.6 percent in the last 24 hours, trading at $0.04.
