NEM foundation, the development team behind the popular cryptocurrency project, NEM, is about to go bankrupt and the foundation is about to start laying off workers in droves. The ongoing downtrend and the mismanagement of funds from the previous council have been identified as the cause.
NEM Foundation Set to Fire Staffs
The NEM foundation will be following in the footsteps of several of other top-ranking blockchain based companies like Bitmain, ConsenSys, Huobi and Blockfolio which have recently let go some of its staffs. This workforce cut has been credited to the ongoing bear market which is eating deep into the pockets of traders and businesses associated with the crypto market.
The NEM Foundation which boasts of about 150 employees will be doing a complete restructuring which will leave a large portion of its workforce jobless.
The Foundation Needs 160 million Tokens (~$7.3 million) to Survive
According to Alex Tinsman, NEM Foundation president, the foundation intends to submit a funding request for 160 million tokens (~$7.3 million).
If granted, this would help save the foundation from going bankrupt.
Mismanagement From Past Council
Alex who is part of the newly founded council, made it known that the new council has done its best to check what might have led to the impending doom the foundation is facing. Upon conducting the findings, Alex concluded that: “Basically we realized we had a month to operate, due to the mismanagement of the previous governance council, ”
“We saw very little accountability for funds and questionable ROI, leading to a burn rate of 9 millionXEM per month. In terms of running an effective organization, the existing structure failed. Maybe that didn’t seem like a big problem when the XEM price was high, but it’s a very big problem as we seek to sustain a viable organization in the ‘Crypto Winter.’” Alex continued
As regarding its current status and the impending bankruptcy and massive lay off, the official community announcement stated;
“The reality of having one month left in funding means we won’t be able to support our current headcount, partnerships, and projects. We need to put everything on hold. This is painful since it hurts good people and partners, but the new council is aligned that we need to be transparent with what is happening behind the scenes of the NEM Foundation.”