Why MaidSafe did not raise enough money in crowdsale?

In the recent announcement about their intent to sell counterfeit MAID, MaidSafe explained why that had to be done.

Why is this Needed?

Those that have been involved with the SAFE Network since the days of the crowdsale will know that while the sale was very successful from a community-participation perspective, it was less so from a funding standpoint and didn’t give MaidSafe the necessary resources to fully accelerate development. The anticipated $8 million (£5.5m) and 3 years of running costs actually equated to $2 million (£1.4m) with the crash in the mastercoin price and fall in bitcoin price taken into account since that time.

It doesn’t seem this is the complete truth. This public document (MaidSafe Retrospective), jointly authored by MaidSafe, Mastercoin and others and currently available via Google Docs, contains another detail (emphasis mine):

Why there was a pre-set cap on the USD amount raised?

  • MaidSafe didn’t want to over-price and screw over early investors. Early investors wanted to know how much they were getting (as opposed to an uncapped sale of tokens)

The screwup with Mastercoin notwithstanding, MaidSafe clearly did not want to raise more than $8 million. If they did, despite the MSC-related issues, they would have raised more (in BTC).

Also note a lie in the announcement quote at the top: there’s been no fall in bitcoin price since that time. During April 2014 bitcoin averaged between $400 and $500, while at the time of the announcement (early June 2016) it was well over $500.

The clueless MaidSafe community did not challenge MaidSafe on either of these points.

 

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