NEM Foundation And NEM Labs Release New Funding Proposal To Keep XEM Alive
NEMs Financial Struggles Continue As XEM Faces Near-Certain Death
As many of our readers may remember, late last month, the NEM Foundation released a statement saying that it had been massively affected by the recent bear market— which had caused the organization to completely restructure its financial and operational framework.
Owing to its recent struggles, the NEM foundation has now made public a host of proposals that have been devised to keep the firm going and avoid XEM from becoming the newest member of the ever-growing altcoin graveyard.
More On The Matter
It is worth remembering that while most crypto projects make use of a democratic and decentralized way to facilitate their day-to-day operations, NEM makes use of a protocol called ‘proof of importance’ (POI) — wherein members are required to vote in support of certain use-cases so as to push forth a funding request.
On the matter, a spokesperson for the NEM Foundation was quoted as saying:
“Due to the depleted funds, a large majority of team members will be made redundant at the end of February 2019 and we will be requesting funding from the community and developers to implement a new structure.”
In addition to all this, another joint statement released by the NEM Foundation recently has made it clear that in the future, the project will be rebranded and promoted as ‘Catapult’. Not only that, but Catapult will also become the “core NEM engine for smart contracts and dApps”.
“The reality is that the adoption of NEM is not the work of a single entity. Proven ecosystems all consist of multiple purpose driven entities that solve specific problems. We are convinced of a future where independent entities like NEM Foundation and NEM Labs solve specific problems for the NEM ecosystem in a unified approach.”
In closing out this piece, it should be mentioned that via a separate announcement released around a week back, NEM has officially entered into a strategic partnership with AI-powered blockchain platform ‘TheVault’. As a result of this joint effort, the folks over at NEM now expect to massively cut down on their operational as well as daily overhead costs.
However, with that being said, the price of XEM (NEM’s native token offering) has continued to slide— so much so that the once top-10 crypto asset has now slid down to the 19th position. Over the course of the past 24 hours, NEM was found to have lost another one percent of its intrinsic value— thus bringing the price of the asset down to a meager $0.038 per coin.
Last but not least, since the start of this year, the once premier cryptocoin has lost more than 40% of its value, with things looking progressively worse with each passing day.