NEM (XEM) Announces Its First Venture Capital Investment
NEM (XEM), a cryptocurrency project building a network designed for better-performing smart assets, has announced that its first venture investment will be in Vimba, a New Zealand-based platform formerly known as MyCryptoSaver that allows users to automatically take money from their bank account and have it converted into crypto for regular monthly savings.
— NEM (@NEMofficial) March 5, 2019
According to the announcement, Vimba is hoping to develop a crypto-first banking model to bring the same services found in traditional finance to the crypto world. Vimba notes that this encompasses savings accounts, collateralized debt, stablecoins and other services.
“NEM is a quality community-driven project, run by the people for the people, which aligns with the ethos at Vimba. The investment is going to enable Vimba to grow into new regions, develop the platform further, providing a safe and trusted gateway to the new economy,” said Vimba Founder and CEO Sam Blackmore.
NEM Ventures’ $0.5 million investment will come in the form of a convertible note with funds set to be released in 2 tranches over the next 4-6 months. 10% of the investment will be held as XEM in Vimba’s treasury to support ongoing operations.
This news comes a little over a month after NEM Foundation’s new leadership published a report revealing it was on the verge of bankruptcy following a year of poor budget management. It seems that strategic investments fit into the project’s renewed focus on the product and lean management, as positive news may very well help turn things around for the struggling project going forward.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.