Altcoins
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Leading enterprise blockchain VeChain on Friday shared its second quarter financial report as part of its commitment to transparency.
“As always, we remain committed to transparency regarding the costs and assets managed by the VeChain Foundation,” the fund wrote, sharing a link to its balance sheet on Twitter.
The overall balance sheet shows that at the end of the second quarter, the firm had assets (bitcoin, ethereum, VET, stablecoins) totaling more than $535 million in dollar terms. However, this is 44% below the value of its reserves at the end of the first quarter, which was about $1.2 billion. Notably, the company attributes this decline mainly to the loss in value of crypto assets over this period.
Despite the decline, the firm claims it has a solid enough reserve to weather the volatility in the cryptocurrency market.
“However, with a reserve of more than half a billion dollars, the VeChain Foundation is more than capable of weathering the storm.”
How emphasized user, VeChain does not show how exposed it is to each token. Instead, it simply gives the current dollar value, which fluctuates with market conditions and is significantly less transparent.
Notably, the company also shared a profit and loss statement or general expenses. The data shows that the company spent the most on PR and marketing, followed by SDG projects and legal fees.
As part of PR and marketing, the company highlights the June deal with the $100 million UFC. In addition, it is worth mentioning that a report published on Friday shows that the UFC has agreed to receive payment in VET, demonstrating faith in the token and VeChain.
Meanwhile, the fund says the reason for the increase in legal fees is the increase in legal advice as it completes its new European headquarters. The company is also seeing growth in activity and adoption in the region. For example, VeChain was chosen as the preferred level 1 blockchain for the UCO network, to help track vegetable oil in Europe and help convert it into biofuel.
In August, VeChain CEO Sunny Lu declared that enterprise blockchain will change the world.
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