Maidsafe scraping the bottom of the development money barrel

Borrowing 24 Million MAID (1.3 Million USD) from the MAIDSafe Foundation to fund development

2 Day's ago on the 31st of May; Maidsafes David Irvine has announce that they require more money to be able to complete the project. They have looked into VC money and options for crowd funding but have found a closer source of funds that will not require outside influences which may ultimately disrupt the projects vision.

24,000,000 MAID will be taken from a fund that has been sitting dormant since the ICO; what are these coin you may ask... funny answer they are a bug!; an accident; During their ICO they were accidently created based of an immature Mastercoin platform resulting in an over issuance. This immaturity was due to MAID safe being the first real ICO and Mastercoins maiden voyage. Like all things in life; projects are no different. live and learn. The Mastercoin project is now known as OMNI and has gone on to host many other project on their network.

1.3 Million USD is a significant amount especially since they project has been running for 2 year off 2 Million USD (due to ICO fund being devalued off the back of a bear market in BTC and Mastercoin after the ICO)

What will they use these 24 Million coins for?

19 Million Will be used by the project to fund further development and continue the project; that is to say they will be sold onto the market or other means to derive cash to pay developer.

• Accelerate the ongoing development of the network.
• Support the development of third party applications.
• Raise awareness of the network amongst potential end users.

5 Million Coins will go to bounties, community projects related to launch, PR, branding, marketing and outreach programs.

While this might sound very scary and gloomy; i feel that the Project founder will not market dump these coins and will pace this sale so as not to impact the price significantly; he has said this will be a sensitive operation.

TL;DR

Maidsafe will be taking a cash advance on their future income in the form of 24 Million Maidsafe coins with current market value of 1.3 Million USD; as a last ditch effort to continue funding development and to launch the network. Money will also be spend on PR, marketing, bounties and other intuitives to benefit the network and adoption.

Conclusion

Although David has the best intent a does not want to affect market price; 19 Million coins equates to about 4.2% of their current coin supply and the added sell pressure and speculators exiting may cause a dip in prices in the next few months. This will provide a good buying opportunity for people with a long term view in a project that is very interesting.

My Thoughts on price

Since the announcement the market has dropped 28% to 9556 sats and has found buy support and levelled off at current price 10872 sats; the market is currently sitting on decent support from historic levels and 50w moving average; if these levels do not hold it may slide back to the next decent support between 6500 - 7200 sats after that 4500-5000 sats is the last point of protection before a full retracement to around 3000 sats. i think if we are lucky enough to get another shot at owning some MAID for less than 5000 sat's it represents good value long term

Enlarge

This money going toward furthering the network and growing the team will mean that the network is ready to launch earlier than would have been achievable with current funding.

References:
Maid Safe Blog Post
Interview with David Irvine