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NEM Foundation Clarifies Concerns Surrounding Bankruptcy Issues

By Anne W. | February 6, 2019
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NEM Foundation Clarifies Concerns Surrounding Bankruptcy Issues

The NEM Foundation recently has released a series of answers to questions surrounding the firm allegedly going bankrupt. The questions were responded by the NEM Secretariat Office under the new management of President Alexandra Tinsman.

Questions Regarding Community Funding of $7.5 million

The NEM Secretariat Office notified the community that the company is looking to possibly make use of a crowdfunding event to help it gain more liquidity, instead of utilizing the community fund it has assigned previously for specific operations. More details regarding the fundraiser will be released soon, they confirmed.

Message to the Employees

Addressing the recent layoff issue, the NEM  foundation stated that “there will be a significant majority of the staff that will have to be made redundant due to the budget cuts and change of focus to a product-based organization.”

When asked on the number of staff being let go, NEM emphasized that “the NEM Foundation is not firing any staff,” instead reiterating that budget constraints due to the sluggish market conditions have led to the layoffs. The firm also added that those who have been laid off will be “given consideration for current openings if funding is awarded.”

Failure of the Promotion-based structure

In a reply regarding the spending of 80 million XEM token by the previous management, the NEM Secretarial office notifies the community that the funds were used only to “facilitate upcoming marketing projects.”

“The foundation’s original charter was to be the trustee of and make decisions for the public chain and spread its adoption. Awareness was a secondary goal of the foundation because it should increase naturally as a result of (successful) adoption. Therefore, in 2018 funds were primarily spent on marketing activities and training.”

Regarding the current state of NEM’s finances, it was confirmed that the foundation is not bankrupt, but is running low on XEM and FIAT funds.

“The 2019 Foundation is currently preparing a plan to achieve funding for the rest of the fiscal year and the restructure was place as a cost-saving measure.”

A Fresh Start

Going forward, the firm has now devised a new operational strategy that would eliminate the regional teams for product-focused teams. In addition to this, the ‘level of autonomy’ that the regional teams enjoyed has also been slashed by a huge margin.

Following such scheme, a strict hierarchy will be set up to keep the members aligned with the firm’s vision and mission.

“All Foundation employees and contractors will now report to one of the seven product teams. The heads of these teams are Chief Technology Officer, Chief of Product Management, Chief Financial Officer, Chief Business Development Officer, Chief Operations Officer, Chief Marketing Officer, and Chief Revenue Officer. Each of these team’s leads will be responsible for reporting metrics and delivering ROI directly to the council and community to maintain transparency and accountability.”

Last but not least, NEM has also signaled for a massive budget cut that will see the company reduce its annual expenditure by 60%.

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