NEM (XEM) Future to Be Decided by NEM Foundation, NEM Labs
The two entities tasked with developing the NEM ecosystem have come up with different but complementary programs to expand the adoption of the network and the XEM digital asset.
NEM (XEM) has become yet another project at a crossroads as the pressures of the bear market curbed its growth potential. Additionally, the platform is getting less attention after the slowdown in initial coin offerings (ICOs), with distributed apps, smart contracts, and tokens more often utilizing other technologies. For this reason, both NEM Labs, a development group based in Europe, and NEM Foundation, the entity responsible for popularization and adoption, have come up with plans for funding and ensuring the future of NEM.
The two groups have also released a joint statement regarding the prospects of the project. The drive for a renewed roadmap and wider adoption comes a few weeks after the NEM Foundation announced layoffs caused by the loss of value in the entire digital assets market, but most notably XEM.
XEM appreciated rapidly in the boom days but then went on the decline, especially in the aftermath of the Coincheck hack. The asset has lost 98% of its value since its peak and is down 93% year-on-year. XEM traded above $1.72 in January 2018 but has now slid to $0.039, with continued price weakness and shrinking volumes.
Given the current state of the asset and the persistently low adoption of the network, the NEM Foundation announced it might resort to closing if conditions worsen.
“The Foundation will use all remaining funds to pay off liabilities and (very likely to) proceed to close the Foundation as a worst-case scenario. The community will have to self-organise on the management of social media, partnerships, commercialisation and sustainability of the NEM blockchain technology platform, which is what we want to avoid,” the statement said.
The NEM project will strive to preserve its partnerships, as well as keep enough developers on board to complete the Catapult upgrade and popularize the asset.
The future of the NEM Foundation will be decided between 15 to 20 February, and the organization will continue existing only if there is a significant voter turnout and at least 65% vote “yes” on the proposal.