Blockchain News

Crypto winter hits NEM foundation as it plans Layoff and Pivot

The NEM foundation is planning a layoff across it’s entire 150-person staff in the wake of severe budget cuts for an upcoming restructuring.

Alex Tinsman, president of the NEM foundation said that NEM will purportedly submit a funding request to it’s community fund. The amount required would be around 160 million tokens. The money will be used to bring the organization out of the bankruptcy state.

Coinmarketcap lists NEM tokens under the XEM ticker. It has a circulating supply of 9 Billion. Presently. XEM is the world’s 18th largest cryptocurrency by market capitalization.

“Basically we realized we had a month to operate, due to the mismanagement of the previous governance council,”

Tinsman,  who took over the non-profit in January, said in an interview.


As a result, the foundation’s 202 members – people who undergo identity checks and pay an annual $50 membership fee – will be asked to vote on the funding request in February after it’s published on Thursday. The number of layoffs will be determined by how much funding the community approves.

Tinsman said.


Major Funds spent on Marketing

Tinsman mentioned that  foundation has spent roughly 80 million XEM between December 2017 and January 2019 on marketing.


“We’ve reduced marketing activities because it doesn’t make sense to market a product [Catapult] that isn’t out yet,”

Tinsman said.

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According to a longtime NEM user, a developer who asked to stay anonymous because he worked directly with departed leadership, Wong faltered when he used his visibility at the foundation to promote “sketchy” initial coin offerings such as Ecobit and ProximaX.


“There’s not a whole lot of people working on this platform. Even though it’s easy, the community isn’t really there unless you go to Japan,”

the developer said. 


Tinsman,  is embarking on a much more disciplined roadmap for 2019. The teams will be given specific budgets and they will  perform more open-source documentation of their progress making tools for the NEM ecosystem.

“The community will also be voting on these [funding requests] and which ones we should be moving forward with,”

she said.

Also Read: BitTorrent (BTT) Completes Successful Airdrop for Unfulfilled Users

Tinsman further plans to monetize the foundation’s activities in 2019, including enterprise training and affiliate marketing, to reduce the nonprofit’s reliance on community grants.

“It’s really exciting to me that NEM has a strong suite of tools and a community that is moving forward to change the future. And now we can support them in meaningful ways.”


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