The Filecoin hype must go away, here’s why

There is a new coin that creates quite a stir in the market, but it is not that new.

Filecoin, a decentralized data hosting platform secured millions of dollars through its initial coin offering [ICO] in 2017. Despite being based on Ethereum, the FIL token has its own blockchain and launched it in phases leading to the launch of a mainnet. On October 15, FIL went public on major exchanges and has been a hit with traders.

Source: TradingView

According to Binance’s FIL / USD chart on TradingView, the token has managed to report growth of 353.44% since its launch. However, when trading of the token began, it was valued at different price levels on various exchanges and within a single hour its value was being pushed and pulled between $ 10.07 and $ 268.92, although the trading volume was low above $ 66. Currently, the asset’s value is settled at $ 45.26.

New hype, new bubble?

The Filecoin team had been hard at work launching their mainnet, and when it launched on October 15, the team introduced an enhanced web with an “open, decentralized, and verifiable storage layer.” The team famous that:

“The Filecoin network has now entered a silent post-launch monitoring period to ensure the network is running smoothly. During this time, we will be closely monitoring network performance as we prepare for Filecoin Takeoff Week. So far the network is stable and community members report successful operations. “

However, there was a slight hiccup with the narrative. As the Filecoin mainnet launch pushed the price up a lot, some crypto users assumed it was a bubble, asking Where can they shorten the coin? Cryptocurrency chain and social data provider Santiment reflected on the evolving online sentiment towards the project and claimed there were many non-believers in the community. He additional:

“… Right now it seems like there are a lot of non-believers, but you can clearly see short through the ceiling with 134 social volume when it normally rests around zero or one. Now when this usually happens, especially after a sudden spike, we’ve noticed that, on average, things tend to decline around 9% over the next 12 days. “

The rising price will only be visible after the current hype wears off and traders move away from shorting the coin. Meanwhile, the volatility in the market remains as the remaining Fileoin network prepares for the take-off week starting on October 19.

This is a machine translation of our English version.

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