The VeChain Foundation has released its financial report for the first quarter of 2022, which shows that the project has amassed a huge sum of $1.2 billion, but only spent around $4.1 million for the quarter.
VeChain (VET) is a blockchain project aimed at enhancing supply chain management.
The foundation's financial report for the first quarter of 2022, released on May 10, outlines its balance sheet as of March 31 and its use of funds for the quarter. While its treasury started the year with $1.37 billion in assets, including stablecoins, BTC, ETH, and VET, it ended the first quarter with just $1.2 billion. Most of the losses were caused “due to cryptocurrency market volatility and other expenditures by the VeChain Foundation,” the report said.
Since December 31, 2021, the price of Bitcoin has fallen by 34%, ETH has fallen by 36%, and VET has fallen by 54%. December 31, 2021 marks the start of the program's first quarter track, which will run until March 31.
Of the $4.1 million spent in the first quarter, the foundation spent $1.8 million on ecosystem business development, its highest spend. These include partnerships, custody, wallet providers, brokers, community events and ecosystem project collaborations.
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VeChain Foundation's financial status in the first quarter of 2022
This is followed by $1.1 million in ecosystem operating expenses such as team costs, office space, public fees, consulting fees, and external services.
While the report states that the treasury will be used to "ensure the long-term development of the VeChainThor blockchain," it is unclear whether the foundation will open the treasury's taps for more investment spending.
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Expenditure of VeChain Foundation in the first quarter of 2022
The foundation's first-quarter revenue was also not mentioned in the report. The transaction fees collected by the VeChainThor blockchain are distributed among the validators and other stakeholders of this ecosystem. However, there is no clear data showing the total accruals in the financial report.
The financial report also announced VeChain's carbon emission data management system and partnerships between VeCarbon and cement industry companies.
In Q1, VeChain launched its own stablecoin, VeUSD, through stablecoin issuer Stably. It has also entered into a partnership with Amazon Web Services (AWS) to build VeCarbon, an emissions management software-as-a-service (SaaS) system for China.
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