The cryptocurrency market has been on a downward spiral since the beginning of this year. Bitcoin had a valuation of 65,000 dollars at the start of the year and it is now worth 46,000 dollars. The price prediction for Filecoin is also down $6 in January to $9 by the end of 2022 as per CoinMarketCap data. Filecoin was once valued at over 500 million dollars but it’s now worth under 190 million dollars. It’s quite a dramatic drop considering how Filecoin was once one of the most anticipated ICOs in 2017 with good momentum and hype behind it.
The reason for the failure
These were some reasons for the failure. Let us know about it. There are speculations as to whether it could be because of the users who didn’t pick up on the subject but its price had increased exponentially in December 2017 and January 2018. It is also possible that its failure was due to other factors like technical issues and the appearance of other blockchain projects during the same period.
However, there were concerns that the investors who had invested in Filecoin may have been tricked into buying tokens at inflated prices. The financial report showed that investors lost $450 million dollars in a short period of time with transaction frustrations looming behind them. This may indicate poor management by the team, creating a poor user experience, or some other issue that confused investors.
What is Filecoin?
This Filecoin is a blockchain-based storage network that aims to disrupt the cloud storage industry by creating a decentralized network with data providers and users interacting with each other in a peer-to-peer network. Many believe it will have the power to disrupt industries ranging from music streaming, video streaming, gaming, and more.
What are the utility tokens?
Filecoin has three utility tokens called: 1-AFP (Airdropped platform coins),2- UST (User rewards coins) and also FCN (Storage coins). AFP is airdropped to the Filecoin investors, UST is for the storage providers and It will be used for sharing the documents when users upload files to the network.
Advantages of Filecoin
- It has a large backing of investors including venture capitalists, Sequoia Capital, Union Square Ventures and Winklevoss Capital.
- The platform is highly anticipated by the industry. It has been considered. As one of the most exciting ICOs in 2017 and it’s even expected to raise over 500 million dollars.
- Given that Filecoin raised over 100 million dollars in its first round, it might just be as successful as other blockchain projects such as Ethereum and Ripple in the long term.
Is Filecoin still under development?
Yes, Filecoin is still under development. It needs to move from a concept to a product that can be released in the market. It is still in the stage of building storage networks between data providers and users through an open-source protocol. Many investors hope that it will deliver on its promises by releasing FCL tokens for storage.
This will allow users to store files on the network and pay for this service by using FCN tokens. Filecoin hopes to have data providers on board by allowing them to create capacity on the network as well as earn money from it.
Filecoin Price Predictions
As per our technical analysis, Filecoin has strong support at $8. The current market value is $12.19 and much higher than its price in January ($9) which indicates a positive trend. Our predictors have analyzed the prices of Filecoin and predict that by the end of this year, it will be worth $11.1 or even $12.36. Considering this Analysis, we have come up with an estimated price of Filecoin in 5 years’ time to be $16.70 based on our website’s algorithms.
