- VeChain Foundation holds $275 million worth of cryptocurrencies in its reserves.
- VeChain experienced a decline of nearly 30% in its reserves, with its Q3 results showing reserves standing at $357 million.
The VeChain Foundation recently published its quarterly financial reports for the Q4 of 2022, which showed that the Foundation holds $275 million worth of cryptocurrencies in its reserves. This includes a trove of Bitcoin, Ethereum, VET, and stablecoins, among other assets. The Foundation currently holds $35 million in stablecoins along with $240.3 million worth of cryptocurrencies mainly BTC, ETH, and VET. However, the bear markets wiped out a portion of VeChain’s reserves, with its Q3 results in 2022 showing reserves standing at $357 million. That’s a decline of nearly 30% in three months during the Q4 of the same year.
VeChain Foundation explained the reserve dip in their latest blog post saying, “Towards the end of Q4, the fair value of total asset in USD was recorded at 275 million, indicating a 30.68% decline from Q3. This dip was primarily attributed to the prevailing crypto market situation”. Despite the dip, the fintech firm confirmed that a handful of clients were open to accepting cryptocurrencies as payment for their services, with around $2.18 million worth of cryptocurrencies including VET paid to clients who accept cryptocurrencies. Close to $15.3 million was paid in the traditional form of finance such as fiat.
In addition, the recent blog post highlighted that clients were open to receiving VET tokens as payment for their services. “‘Paid in Token’ refers to an instance where a client was willing to accept payment in VET. A sign of confidence and faith in the value of VET as a utility token,” the blog post read.
VeChain is currently trading sideways for close to a month and is hovering around the $0.023 mark on Monday. VET doubled in price this year between January to late February and retraced in price in March. While VeChain’s reserves have taken a hit due to the current market situation, the fact that some clients are willing to accept VET tokens as payment for their services is a positive sign for the future of the cryptocurrency.