Edit: thought I was quoting but reference this conversion amount. MAID => SNToken issuance at launch - #56 by oetyng
It has been mentioned merely as a possibility that when MAID is converted to SNToken after launch that each MAID could be exchanged for 6.7 SNToken.
We don’t yet know how the market might react to this and the effect on price but one positive thing we as a community could do is to devote a portion of this larger position to Market Making.
Even the hash graph founder on a podcast was answering to dissatisfied investors that because they don’t participate in market making for “moral” reasons that HBAR doesn’t see the same kind of price appreciation that other coins do.
Without Market Makers there is a lack of liquidity for speculators big and small which means less volatility and less price appreciation. It simply attracts more sophisticated traders and investors. Without a deep pool of liquidity we will never land big fish. Big fish might be big name partners that want to participate in the network, farm, use or provide services but would need that liquidity to feel comfortable they could sell when they needed to. Elon Musk did just this privately with Bitcoin to make sure they could sell without affecting the price.
It’s not all about the money of course. We are clearly here for the world changing technology but price appreciation can help us help the network and the network attract more interest!
AFAIK when you hire out Market Making, you put forth the liquidity you plan on providing (which cumulatively will have to satisfy their amount requirements) and you still own those funds, they trade it across markets to help create price action/supply/demand, and I believe you even earn a small portion of fees. Regardless it ought to have a positive impact on the rest of your holdings.
It’s not set in stone that each MAID will be exchanged for 6.7 SNToken but if it was this would prevent Maidsafe from having to devote further funds to and shortening runway to fully featured network with distributed compute and on and on. It would also be easy to justify for ourselves as it is a position we never would have expected to have and a way to help ensure that SNToken can gain traction.
Of course there are some other details to keep in mind, mainly in my mind, will exchanges ban privacy tokens?
- What are your thoughts?
Do you support pushing forward on this as an effort if 1 MAID = 6.7 SNToken?
- Would you contribute?
- What percentage of your new large bag would you feel comfortable yet generous enough to put forth?
I believe you know a bit about market making. Are there any further insights you could provide?