NEM (XEM) price takes a dive, down 6% following near-bankruptcy

31 Jan, 2019 | Updated: 31 Jan, 2019
by Will Heasman
Price Action
NEM (XEM) price takes a dive, down 6% following near-bankruptcy

In a bid to remain transparent, the NEM foundation recently announced a reshuffle of their plans due to a “catastrophic drop” in the NEM (XEM) exchange rate.

Unfortunately, this attempt at transparency hasn’t done any good to the price of XEM, dropping 6% down to a price of $0.044, since the news broke:

The “catastrophic drop” mentioned by the NEM foundation is more explicitly a 97% crash from its all-time high of $2.03 back in January 2018.

The foundation recently told its community that following a refocus and with bankruptcy on the horizon, layoffs would be expected.

Upholding their promise of transparency, the foundation revealed the particularities of their failings, detailing a lack of “accountability”:

“We saw very little accountability for funds and questionable ROI, leading to a burn rate of 9 million XEM per month. In terms of running an effective organization, the existing structure failed. Maybe that didn’t seem like a big problem when the XEM price was high, but it’s a very big problem as we seek to sustain a viable organization in the ‘Crypto Winter.’”

The community responds 

Following the news, Crypto twitter reacted in various ways...

Some appreciated the transparency:

Others tried to decipher which way things would go:

A few were saddened:

And some speculated that this may be a shake out:

However, this isn’t quite the end for NEM, who have put together a new plan going forward. Heres hoping this wake-up call does the trick, and the team can get the project back on track.

(all prices correct at the time of writing)

Read more: NEM refocuses strategic plan with one month of funding left, layoffs expected

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Read more about: NEM (XEM)

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