It's pretty simple what happened.  Bnktothefuture is still an imperfect system and there were fraudulent purchases and/or investors who weren't legally able to invest and that was determined after the fact.

I have zero doubt Factom is 100% in the clear and this is a non-event.

Are there major bugs with M2 they're struggling to figure out or are they just polishing at this point?

1.  By M3, who is a Federated and who is an Audit servers will be voted for by users of Entry Credits.  It could end up being you or me.  M3 will make it a decentralized system.  M2 will be centralized and Factom appears to be choosing who is running those servers.

2.  I suspect initially a Federated or Audit server could be run on a VPS.  I also suspect, in time, Federated and Audit servers will require MUCH MORE computing power as use of the protocol grows.

3.  www.factom.live for the rich list -- it is widely suspected the top is Poloniex's cold wallet.

Outstanding.  Seriously, having someone like Tim Draper on board with Factom is so much bigger than people realize.  Not only will he be an amazing advisor, but he has countless connections and will open doors for Factom we can't even begin to fathom.

Absolutely huge.

Do you guys remember me stating going through BnkToTheFuture for funding wasn't the greatest idea because Factom needs seasoned advisors and would benefit from having VCs who have been there, done that on board?

With Tim Draper investing, I take that all back.  He's the real deal.  One of the best VCs out there.  There aren't many VC firms I'd rather have investing in Factom.

I didn't call it Insider Trading which I suspect you're thinking of.  I called it Insider Buying.  Paul is an insider.  He bought FCT.  Do we really need to debate this?

Insider BUYING of Factoids.
From Reddit:
https://www.reddit.com/r/factom/comments/55dpo1/fud_in_social_media_responsible_for_recent_price/d8bl667

If you have any experience in the stock market or even a drop of common sense, you will understand that this is extremely bullish for Factoids.

I think I'll use this opportunity to talk valuation with you all..  I am going to keep it extremely simplistic, but there is an important piece of information which I think most aren't realizing that I'll reveal.  As we know, the Series A valuation was such that Factom Inc. is valued at around 30 million by investors.  But how should Factoids be valued based upon that?

That 30 million valuation is based upon many variables.  However, to simplify things, remember that Factom Inc. regularly states that their revenue is going to be based upon earnings from providing apps/services that use the Factom Protocol (and thus Factoids).  But in reality, this just doesn't matter.  Factoids shouldn't be valued based upon Factom Inc's valuation.

Factom is creating a PROTOCOL.  Competing companies to Factom Inc. can use the protocol and will use Factoids (unless they fork and setup their own Federated and Audit servers which I doubt but am open to happening).  Non-competing companies can also use the protocol and they too will use Factoids.

I like to think of Bitcoin at TCP/IP and the Factom protocol as www.  

By investing in Factoids, you're not investing in Factom Inc.  

You're investing in the potential success of every company and individual that is going to benefit from using the www, including, but no doubt not limited to Factom Inc.

Factoids are going to have to one day be insanely valuable.  Why?  Because Federated Servers aren't that well named.  It fits for now, but at some point in the future, they'll need to be Federated Data Centers.

I've been impressed with Factom and Paul's comments regarding this situation.  It's obvious a lesson has been learned which is part of the startup process.  All startups makes mistakes, it's just appears more dramatic when the startup is under the type of scrutiny Factom is.

I view this as a positive as Factom will be able to implement sound protocols to ensure a similar situation does not arise again.  It's best to get these types of mistakes out of the way early.

I suspect we'll be seeing Factom's price recover before too long.

It does raise the question of who else had this information before the rest of us?  I wish I would have PM'd Paul so I could have dumped before everyone else too.  I thought it was just people running stops but now I'm not so sure.

The difference was you told the community instead of one person privately.

I'm not angry with you as I understand these are common mistakes made by startups.  But please reflect on this and learn from it.  Small startups can be forgiven but as you get larger, how Factom interacts with the public and investors is going to have to grow substantially more sophisticated.

This isn't something small.  If I was a VC invested in Factom, we'd be having a long conference call.  This is one of the issues I see with going through Bnktothefuture instead of normal funding routes.  Yes, I'm sure you'll enjoy the greater autonomy, but there is tremendous value in having highly seasoned advisors with a substantial stake.

D-Lux - why is there no record of your conversation?

At this point, we need an official statement from Factom.

That M2 delay is fake.  For Paul Snow to update a single person in private and not the general public would be incredibly unprofessional.  And Paul Snow is not unprofessional.

Very simplistically speaking, the developers were working on code late Thursday and Friday that all went into M2-Friday.  Then over the weekend they began working on new code and that went into M2-Monday.  They merged that code with the code from M2-Friday.  They'll continue to work on the code tonight and tomorrow which will go into M2-Monday.  At some point, that will get merged into M2-Tuesday.  And at some point later in the week, into M2-Friday.  Rinse and repeat.

In short, there have been many M2-Fridays and there MAY be more.

That's not how it works.

If M2 doesn't work or is an incredibly buggy hunk of crap, dump (after me).  But if there's just the normal and expected bugs and works well overall, then Factom works and that is big news.  Basically, at this point, we're all gambling that Factom programmers are highly competent.  I like my bet, personally.

I'm not seeing where it says that.  Screenshot please?

The problem is, lots of people don't like leaving coins on exchanges.  So if they want to pull coins of the exchange, they have to sell FCT in order to do it.