Since its inception, the NEM (XEM) foundation has been philanthropic in its endeavors to fund businesses. These sentiments were echoed by one of the directors of its new investment department. According to a member of the NEM Venture, most of the projects that managed to accomplish their objectives wouldn’t have done so under the new management.
According to Crypto Briefing, Dave Hodgson, who serves as the mediator between projects said that this new change of structure in the financing model will help in selecting out projects that are not realistic from the common funding pool.
More Stringent Measures Set To Be Met By Businesses Before Funds Are Released By NEM Ventures
NEM Ventures is similar to Cardano’s Emurgo, it was created to manage funds in a professional manner. It operates on a similar model like VC, funding projects that are viable commercially and those that add quality to improve the NEM ecosystem.
When NEM Ventures was formed, the ecosystem funds were all put in a common pool, which was managed by a few individuals. Then those interested in the funds would do a round of voting and the winners would get their funding.
The NEM community highly voted NEM Ventures which received 93% votes in July of last year. It was then officially founded in September and is looking to being self-sustaining by the third quarter of 2020.
When NEM Ventures was established in July, they had to work through a pile-up of projects that were pending funding approval according to Dave Hodgson. These projects where mostly in the health niche and fintech field.
According to Dave, of the 24 cases that are still pending, NEM Ventures has already put money in one and plans are underway to further invest in the coming few weeks. And when a project doesn’t qualify, they are not simply told off, they are given reasons why they haven’t according to Hodgson.
NEM was launched way back in 2015, making it one of the pioneers of projects successfully running on the blockchain technology. However, this advantage has not been fully utilized. The Blockchain Assessment Index held in China 2018, categorized NEM as defunct for the 2nd year consecutively. NEM’s social media accounts are full of conference appearances, but there is minimal development to justify the numerous conferences.
According to crypto briefing, NEM has the 2nd lowest rating after DOGE in their Digital Asset Report and Evaluation. The reason for such a poor rating was because the project had not achieved its projected milestones and the technology underlying it was no longer relevant. Furthermore, there was minimal community support for the project. And their records show that even the planned milestones set to play a vital role will still not be achieved.
Dave did not deny those claims and he, in fact, said that the last few years NEM’s public image had deteriorated. He said that they were sidelined politically but that they were working towards redeeming their public image. He believed that NEM Ventures has what it takes to entice more projects to the NEM community.