Less than a week after the mainnet went live, Filecoin token FIL is experiencing a big plunge in price and public opinion.
CoinGecko data shows that from the highest point on October 16th at 114.32 US dollars, FIL is now at 32.05 US dollars, down 72%.
Not just price, Filecoin is experiencing Waterloo in public opinion.
Chinese miners and investors have never stopped discussing the Filecoin economic model, and questioning the “inhuman” pre-staking and official large-scale transfers. Some people even initiated fork projects.
On the other hand, compared with the domestic boom, there is little interest in Filecoin abroad.
The founder of Ethereum, V God, only mentioned Filecoin when he introduced EIP 1559, and Andrew Kang, a partner of Mechanical Capital, said that Filecoin may be a Ponzi scheme with a scale of 1,000 times.
So, what does the foreign crypto circle think of Filecoin? Why is FileCoin cold and hot? Shenchao TechFlow interviewed and sorted out the opinions of the foreign crypto community on Filecoin, and got a glimpse of Filecoin’s overseas public opinion situation.
Angel investor WhalePanda: FIL will keep falling
Filecoin’s issuance will be similar to ZCash. The most recent example is Grin. The supply in the first few hours/day is very small, and the minimum unlocking time is six months.
Prices will start from the highest point and sell endlessly for many years.
I remember that the FIL private sale price is $0.5, unlocked in 12 months, and the ICO price unlocked in 6 months is $2.36.
About 3 years after the private placement, the off-market price was almost $2-3 until a few months ago. Prices began to rise sharply, and there was a lot of demand from China. In July, coins unlocked in 6 months sold for 7-8 US dollars, which rose to 25 US dollars a week or two ago.
Most private equity dealers sold their coins/accounts before the mainnet went live , because we all know how this will end.
Most of the token economy is miners’ vested coins. For miners, this shouldn’t be a surprise… However, after the launch, 1.5 million FIL was transferred to the exchange, which is very dark.
I predict that FIL will be diving every day for at least the next year.
Blockchain investor The Crypto Dog: cutting leek
As far as I know, the reason why Filecoin is hyped in China is because miners deposit a lot of costs on equipment.
Now that they have spent money, they must make FIL worth it before they can finally withdraw and earn their money back.
Therefore, those in power have worked hard to create FOMO and hype so that Chinese amber can feed the miners. This is called in Chinese: cut leek.
We do not have a huge Filecoin mining community in the West, so no one told us to buy FIL/IPFS.
Andrew Kang, Partner of Mechanical Capital: Ponzi scheme
Filecoin mining is a Ponzi scheme of 1,000 times the scale, and the MLM organization selling Filecoin mining machines in China was eliminated by the US Filecoin team.
In China, over 1 billion U.S. dollars is used to purchase Filecoin mining machines. More than 100 million U.S. dollars of FIL was bought off-site by Chinese institutions from Western ICO investors.
Either this is one of the greatest economic projects in the history of cryptocurrency, or Filecoin needs better economic consultants.
Huobi Capital Celia Wan: The Fallacy of Sunk Cost
Recently, I have often been asked why Chinese people like Filecoin so much?
-The fallacy of sunk costs.
Imagine that you hold a bunch of Filecoin miners and have deposited a lot of money in it. Now you need actual Filecoin to bet to mine more Filecoin.
You tell me what to do?
Investor Anish Agnihotri: Filecoin storage costs are cheaper than Amazon
When the FileCoin mainnet went live, I was curious about the actual cost of storing data on the Internet. Therefore, I spent 2 hours building a website .
Justin Sun, the founder of TRON: Annoyed Filecoin
The scam is coming? 1.5 million FIL, each FIL 200 US dollars, the highest value is 300 million US dollars. The price is now less than $60. It has fallen by 70%, there is no lock-up, no announcement to the society, no announcement to the society. How much did you sell? Juan Benet, is this all right?
All are transferred to the exchange without the consent of the community. Investors in exchanges, especially in the United States, should ensure that they are held accountable under the protection of the SEC
15% will be allocated to Protocol Labs Genesis, with 6-year linear attribution. 5% will be allocated to #Filecoin Foundation Creation, 6-year linear vesting. The founder’s share should follow the attribution rules. These are the legal documents they signed with all FIL SAFT investors
Everyone, including miners, investors, and founders, should follow the linear attribution rule. Violating the attribution rules will have serious legal and compliance consequences. Do you really think such a sell-off is okay?
FileCoin revenue generator Juan speculated that Justin Sun was prepared to take the opportunity to fork Filecoin. He also said: “Justin Sun is not anyone’s savior, just ask Hive. If he does fork, I will give some advice to those who are considering joining: Review all previous projects related to TRON, you are sure Want to be a victim of a fraud project? Good luck to you!”
The media person James Spediacci joked that Justin Sun is already planning to copy and paste the Filecoin white paper, leading the Chinese miners’ uprising to fork Filecoin, calling it “JustFiles”.
Blockstack co-founder Muneeb: Support FileCoin
I am very excited about the Filecoin mainnet launch. The following are my memories about Filecoin.
In the summer of 2014, Mountain View, California. Juan (founder of FileCoin) is working hard on IPFS. Juan joined the Y Combinator incubator at that time. YC’s partners told Juan at a group meeting that he needed to stop programming and write the Filecoin white paper first. Juan disappeared for two weeks. Our group (we are the same group in YC S14) meets and updates every two weeks on Tuesday. Finally, Juan appeared with the Filecoin white paper.
YC’s demo day was in August, when few investors knew about encryption technology. At that time, it felt like Filecoin and Blockstack were speaking French, and everyone else was speaking English. Fortunately, institutions like Union Square Ventures and Winklevoss Capital also exist, and they understand our potential.
Juan is the first group to pay attention to IPFS. IPFS is an interface for point-to-point storage. The developers liked it very much, and you could see the participation of Github on the rise.
In 2017, encryption technology was sought after. The new Filecoin paper came out. At that time, there was no platform similar to CoinList, so Juan used AngelList to build a fundraising platform internally, and the token issuance attracted about 200 million US dollars in total. (Blockstack a few months later, with the same CoinList raised about 50 million US dollars)
Juan began to work hard again. His external view is that launching a blockchain is like launching a rocket: you need to figure it out. This is a complex task, and the storage opportunities are huge.
The Filecoin testnet took off in China. About $100 million in storage hardware is buzzing on the testnet. What seemed like a fantasy during YC is now approaching reality step by step. Buying hardware and converting it directly into cryptocurrency is the key here.
As a friend, colleague and investor, I strongly support Filecoin to succeed. Some people have lost their dreams, not including Juan.
Investor Nico Deva: The much-anticipated Filecoin turned into a shit show
After 200 million USD IC0 and 3 years of development, Filecoin has transitioned from the verification network to the main network block 148888. Within 24 hours of the mainnet launch, most of the miners have started to strike, talking about failures and forks.
Why is this happening?
Filecoin is very complex and requires high-end hardware, including a minimum of 128GB of RAM. The price of a miner can reach up to 40,000 USD (including hosting and maintenance), and the regular price of a 350TB Filecoin miner is as low as USD 20,000
At the same time, you need to pledge FIL, which is a guarantee measure, but this is a tasteless move, because no one has FIL when they start mining. Miners need to purchase FIL to continue to increase production to full capacity, otherwise they can only stay at 1/7 capacity
In China, miners are very disgusting. Just use a napkin to calculate that your mining equipment requires at least US$20,000 in hardware, and at the same time, it will force you to buy more coins.
At present, the total network capacity is around 600PiB, which is equivalent to 240 million yuan worth of hardware based on the installed capacity of 4200PiB, which does not include all waiting to be installed. This is not a market valuation, it is real money, it is a real server, this is still a conservative estimate.
Miners invested so much hardware in the early stage, but because they were forced to buy FIL, they could not continue to increase production capacity.
At the same time, although it is said that the unlock period of all coins ranges from the shortest 6 months to 6 years (team), 1.5 million FIL was transferred to Huobi and OkEx.
The miners provided tremendous support to the Filecoin team during development, but they are now knocked down. The much-anticipated Filecoin conference turned into a shit show, disappointing.
The FIL004 Filecoin improvement proposal aims to change the unlock ratio of miners from 100% to 75%. The proposal has been adopted.
In short, it seems that the miners have been beaten badly, Slack is full of complaints from miners, and Filecoin is busy ignoring them.
Storecloud founder McCoy: The cost is transferred to the miners
The common mistake of Filecoin and EOS is to impose a large amount of infrastructure costs on the founding miners.
If the economic incentives and security of the settlement layer are valuable to the founding miners, then they will be asked to do more work and then to upgrade the “computer”.
