can the FIL token explode?

Updated on August 01. 2022 at 2:23 pm

Filecoin crypto is a project that is often praised. Its stated purpose is to “protect humanity’s most important information”. An ambitious resolution that makes it very popular in the circle of cryptocurrency insiders, but also reaches out to novices and in particular to companies concerned about securing their documents. Could this popularity boost its FIL token?

What is Filecoin?

The project originated in 2017 from the work of Juan Benet, creator of the Web 3.0 protocol InterPlanetary File System (IPFS). He is also the founder of Protocol Labs which supports the Filecoin project.

Filecoin crypto is an open source network dedicated to: save and share document. So it works in the same way as solutions like DropBox or Google Drive. However, Filecoin admits a big difference with this. Indeed it is completely decentralized and used blockchain technology for optimal security of user files.

The Filecoin network is built on the IPFS mode who works in Pear to Pear plus a financial incentive. Thus, users pay miners for storing, retrieving and distributing data. In return, miners receive a reward in FIL, the network’s native token.

Miners are encouraged by an operation based on two consensus: Proof of spacetime (PoSt) and Proof of Replication (PoRep).

The first allows check the correct storage files. For example, the Post certifies the honesty of miners with regard to the fulfillment of its primary duty over a specified period of time. If storage is effective, miners get reward tokens.

The second test the availability of data. Miners must prove that they are storing a completely unique copy of a piece of data. In this way they ensure that the documents are always available and retrievable.

The amount of the storage service is determined by the miner and thus depends on an open market influenced by supply and demand.

Why is Filecoin crypto so popular?

Filecoin enjoys a good reputation and also has an excellent reputation for various reasons.

Initially be accessibility is such that it allows everyone to become a small potential ; all you need is a storage space (big enough) and an internet connection. In this way Filecoin offers an opportunity for everyone to: earn cryptocurrency by monetizing his storage units.

then are community aspect based on user collaboration is very appealing. While miners face some sort of price competition, the fact remains that this is healthy and does not compromise the inherent security of the project.

In addition to the community and accessibility, Filecoin offers a reliable and fast service.

Hair reliability is guaranteed by its coding system designed according to the strictest standards on the market. The use of blockchain technologies also increases resistance to censorship. Thus, users are assured of the integrity of their files, regardless of the desired storage time.

Hair speed is also an asset of the project. The architecture is built to adapt to the requirements of the users.

Finally the project is supported by many major players of the cryptosphere: Hedera Hasgraph, Flow, Near Protocol or the Ethereum Foundation have signed collaboration agreements with Filecoin crypto.

polygon has developed a bridge between the two networks to accelerate Web 3.0 interoperability.

open sea uses Filecoin’s services to store, protect and maintain the integrity of its users’ NFTs.

FIL is the network’s native token. The project enables a maximum delivery of 2 billion tokens. To date, according to CoinMarketCap, there are said to be 247,437,856 FIL in circulation.

A private ICO organized in 2017 enabled the project teams to raise $257 million with tokens at $1.30 per unit. During this ICO, 10% of the tokens were distributed. 15% goes to the development team and 5% to the Filecoin Foundation.

The rest, 70% of the maximum supply, will serve as a reward for miners.

power wire
FIL Token Supply Predictions

As mentioned above, the FIL token is mainly a reward token for the attention of minors. It also serves as means of payment users who want to access Filecoin services and retrieve their documents.

According to Protocol Labs, in addition to its two previous uses, the FIL is also dedicated to the trade. It thus has a speculative role on which investors can exert influence.

Filecoin: should you invest now?

Filecoin represents a relatively healthy long-term investment. Indeed, the project itself is almost unanimously regarded as promising. He is also the leader in the fieldwhich is a guarantee of seriousness and points all the lights to green.

He sees that more and more storage requests reach him a cheap and safer alternative than some solutions like Amazon or Google for example. The community is also a guarantee of quality, as Filecoin communicates a lot on social networks, which tends to value your token.

However, it is important to keep in mind that Filecoin’s primary purpose is not speculation and it has little or no financial calling. Filecoin presents a different use case than many projects like Bitcoin. On the contrary, Filecoin combines various technologies with the blockchain to provide a data and document storage solution.

Price FIL/USD
Price of FIL/USD since the token’s launch
Source: CoinMarketCap

After launch, the token remained below launch value for 2 years. We find that the token then adjusted to the market and followed the bull run that started in 2020 to reach peaks before the summer of 2021.

In the past few hours, the token has seen its trading volumes explode as well as its value.

Chart FIL/USD
The price of FIL is up 123% in the past few hours
Source: Trade View

The trend is still mostly bearish

The rebound of the past few hours is obviously not proof of purchase. However, it could be a sign of a stabilization after a bear market in which it will have FIL token lost almost 98% of its value in one year.

Filecoin crypto relies on solid foundations. This is a relatively safe project and investing in this token may be possible, but not right away. He is still too early to position yourself on an altcoin of this type as the market tries to stabilize. On the other hand, it is an asset that could be on an investment list in the next cycle.

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