NEM Foundation Update: Alex Tinsman Explains The Situation

Blockchain, Investing, News | February 2, 2019 By:

The NEM Foundation, a Singapore-based non-profit organization set up to promote NEM’s blockchain technology globally, announced this week it’s planning a massive layoff to avoid bankruptcy.

The foundation said that after the XEM exchange rate suffered catastrophic drops from this time a year ago, it is now facing challenging budget decisions. The foundation has been forced to restructure its current teams after seeing them working hard, but not aligned with the same goals.

Alex Tinsman, the new president of the NEM.io Foundation, answered some BlockTribune questions.

BLOCK TRIBUNE: What happened to the former leader?

ALEX TINSMAN: Lon Wong was a co-founder and the first president of the NEM Foundation which started in early 2017, two years after the launch of NEM. Lon left the NEM Foundation in April of 2018. Since that time he has been focusing on a project called ProximaX, in which is he the President. The NEM Foundation wishes Lon and ProximaX success in the future.

BLOCK TRIBUNE: Is this simply a matter of philosophy? Reading this, it seems like self-promotion was the focus for the former team.

ALEX TINSMAN: The 2017-18 NEM Foundation was originally created to help promote and educate the community about the NEM technology and be the trustee to help make decisions for the public chain. The 2019 Foundation after consideration from the community and ecosystem partners has decided to move from an organization model where regional heads market NEM, to a more traditional centralized business model that focuses around the product development and service. I want to be clear that the NEM Foundation operates as a separate entity and is one of many ecosystem contributors to the NEM open-source project. Therefore the NEM Foundation is not NEM. The NEM open source project remains strong and thriving.

The newly elected 2019 leadership team is optimistic about the future of the NEM Foundation and it’s why the restructure was important.

BLOCK TRIBUNE: Are any layoffs coming?

ALEX TINSMAN: We would like to clarify that the NEM.io Foundation is not firing any staff. Due to budget constraints, there will be a reduction in headcount. A new Foundation restructure proposal was created and operations and staff were suspended until additional funding is secured. Those that have been affected by the layoffs will be given consideration for current openings under the new structure.

BLOCK TRIBUNE: Are there any changes in alliances?

ALEX TINSMAN: The newly elected 2019 leadership team is optimistic about the future of the NEM Foundation and it’s why the 2019 restructure was important. Support for partnerships is temporarily suspended until additional funding is secured but there hasn’t been any specific changes to in alliances.

BLOCK TRIBUNE: Is there any change in markets you’re approaching?

ALEX TINSMAN: The previous strategy for marketing was a mixed bag approach with different regional leaders choosing different methods for adoption and awareness of the NEM blockchain technology. This naturally led to different marketing visions, execution, and policies. Upon securing additional funding, the 2019 Foundation plans to hire an experienced Chief Marketing Officer that will design and implement a unified global strategy for marketing. As result, we expect to see stronger alignment and support globally for the future NEM public chain marketing.

BLOCK TRIBUNE: When you say XEM was frozen, what does that mean?

ALEX TINSMAN: During the transition from the 2018 Council to the 2019 Council, operating funds were temporarily inaccessible until the new leadership took office on January 1, 2019. This was due to transition registration problems with our bank. All operational funds were safe and untouched during this transition. When the 2019 Council took office, a financial audit was done and showed the new leadership had low operational funds and therefore could not sustain the burn rate of the previous 2018 operations. Therefore, a new Foundation restructure proposal was created and operations and staff were suspended until additional funding was secured.