Filecoin: Will History Repeat?
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What Is Filecoin (FILUSD)?
Filecoin is a cryptoasset that aims to incentivize a global network of computer operators to provide a file sharing and storage service.
Project founders claim that if enough people adopt it, it could become the fastest and cheapest way to store data on the internet. What’s more, it would not rely on a central authority, meaning the exchange of its files could not be censored by governments or other actors.
This is because Filecoin is maintained by miners who dedicate computing power to providing the computation that makes it work. Filecoin miners get paid for making storage space available to users. Filecoin users, in turn, must pay miners for storage, retrieval or distribution of this data.
The Filecoin network operates atop another protocol for decentralized file handling called the Interplanetary File System (IPFS). The two systems share many similarities, though the main difference is that while IPFS is free to use, it won’t earn miners any money. Filecoin costs money to use, but could also generate revenue.
FIL Statistics:
Recent News:
*According to TechNode, The Distributed Storage Office of China’s Communications Industry Association warned that Chinese companies are using distributed file storage protocol Filecoin to issue unauthorized wealth management products and conduct illegal financing. A new regulation defining illegal fundraising is set to come into effect on May 1. Whether a crackdown in China will weigh on FIL is TBD. However, it ought to be noted that FIL is a high profile project in China and the vast majority of miners are allegedly based in China.
Potential Catalyst:
Technical Setup:
What Is Filecoin (FILUSD)?
Filecoin is a cryptoasset that aims to incentivize a global network of computer operators to provide a file sharing and storage service.
Project founders claim that if enough people adopt it, it could become the fastest and cheapest way to store data on the internet. What’s more, it would not rely on a central authority, meaning the exchange of its files could not be censored by governments or other actors.
This is because Filecoin is maintained by miners who dedicate computing power to providing the computation that makes it work. Filecoin miners get paid for making storage space available to users. Filecoin users, in turn, must pay miners for storage, retrieval or distribution of this data.
The Filecoin network operates atop another protocol for decentralized file handling called the Interplanetary File System (IPFS). The two systems share many similarities, though the main difference is that while IPFS is free to use, it won’t earn miners any money. Filecoin costs money to use, but could also generate revenue.
FIL Statistics:
- Market Capitalization: 10.9B
- CryptoAsset Rank: #15
- 24-Hour Return: +1.8%
- 7-Day Return: +1.6%
- From All-Time High: -31%
Recent News:
*According to TechNode, The Distributed Storage Office of China’s Communications Industry Association warned that Chinese companies are using distributed file storage protocol Filecoin to issue unauthorized wealth management products and conduct illegal financing. A new regulation defining illegal fundraising is set to come into effect on May 1. Whether a crackdown in China will weigh on FIL is TBD. However, it ought to be noted that FIL is a high profile project in China and the vast majority of miners are allegedly based in China.
Potential Catalyst:
- At the moment, 648,000 new FIL coins are mined per day. After April 15, this number is set to decrease by -43.2% to 365,000.
Technical Setup:
- Turning to FIL's 4H chart, one will see that FIL has retraced considerably since hitting an all-time high of roughly $235 at the start of the month. Furthermore, one will see that FIL might be forming yet another descending triangle.
- Although descending triangles are widely regarded as a bearish chart pattern, they can breakout to the upside - much like we saw in March.
- Be that as it may, FIL's recent rejection from the triangle's resistance suggests that FIL is more likely to test the triangle's support at $136 before testing resistance
- For FIL to trend lower, it'll have to break through the 21D SMA ($154). If the bulls can defend this moving average, we could see FIL trend higher in the near-term.
- A break below the 21D SMA and $136 support would warrant a backtest of the 50D SMA ($94), which equates to a -43% drop from current levels.
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