- Potential reports of layoffs and financial troubles have made investors lose their confidence in NEM. Price drops by 9% in 4 hours.
- Extravagant expenditure on marketing and budget of side projects responsible for low liquidity inside the company.
- New Management and Road-Map at the helm to anchor the sailing ship
Price of XEM ticker Takes a Jibe
The Price of XEM/BTC has fallen down by 9% post the news of the tentative bankruptcy. The RSI index – 15 and 16 indicate oversold conditions in the daily and hourly chart respectively.
Huge Marketing Budget And Failed Projects
The predecessor of Tinsman, Lon Wong, had earlier been accused of unethical marketing by using NEM foundation‘s brand value to push ICOs with a personal stake in it. The NEM foundation’s one of the most significant projects; oil-backed cryptocurrency ‘Petro‘ coin also lost its valor soon after launch, with the Venezuelan citizens preferring Dash and Bitcoin instead.
The company has reportedly spent $80 million on marketing in the year 2018. It is necessary for the innovations of technology companies to spend on partnerships and marketing. However, disproportionate investments and unreliable advertising push of XEM price have proved detrimental for the foundation itself. The bear market and uncertainty in the crypto-sphere has caused a price crash and prevented new investments.
The NEM-Foundation Appoints A New President
Structural changes proposed in the Talent Management of NEM Foundation have revealed that the non-profit organization behind NEM is reeling under financial troubles. The new President of the NEM foundation, Alexandra Tinsman, elected by the voting process on NEM itself, have suggested employee layoffs in the 160 member employee team behind XEM token.
New Road-map AND Catapult Update
The public net roll out of catapult is the most important focus area of NEM foundation according to their NEM Japan page’s announcement of 2019 goals. The company has also mentioned at it would not shy away from appointing new ‘developers’ to improvise the blockchain platform to compete with the new platforms. Tinsman has pledged of “Measurably improve transparency and accountability” of the foundation accounts as well.
The Catapult Public Net will include significant changes in the blockchain platform. The foundation also took complete accountability of communication, NEM council regulation, and ethical foundation practice.
Reportedly, on Wednesday Alex Tinsman told Coindesk that NEM Foundation now intends to submit a funding request to the NEM community fund for 160 million tokens (worth roughly $7.5 million), money that would be used to rescue the organization from the verge of bankruptcy.
However, with new management at the helm and strong community support especially in Japan, the NEM platform can still come out of this difficult situation. The NEM also reached an important milestone by recording 2 million blocks on its chain.
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A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com