Filecoin (FIL), a cryptocurrency has jumped last week into the top ten digital currencies in the world since experiencing a 40 percent increase in a single day. Filecoin was the 9th largest cryptocurrency in the world on April 1st, with a market cap of more than $13 billion, since then it has fallen to 15th spot.
Filecoin’s price has risen 650 percent since its low of $31.57 on February 24, making it one of the largest rallies in the cryptocurrency complex in this year. The cryptocurrency has risen by 42% in one day and 150 percent in seven days and is currently trading below $175. According to some analysts, Filecoin’s price correction is on the way. Filecoin’s RSI or relative strength index indicates that it is significantly overbought, it seems to be in a consolidation mode.
Filecoin is a decentralized project aiming to revolutionize the file storage industry. It addresses the issue of companies such as Box, DropBox, and OneDrive being granted too much control. These businesses have the power to refuse service, raise rates, and even impose authority. By storing their files in a decentralized network, it takes away their strength.
Is China behind the rise?
Filecoin’s listing on Coinbase in December and Grayscale Investments inclusion of a Filecoin Investment Trust to its roster of crypto investment vehicles have recently brought the Filecoin (decentralized Dropbox) to the attention of crypto speculators. Unlike Bitcoin mining, Filecoin miners must purchase FIL in order to mine more of it, which means that new miners must constantly purchase FIL in order to get started.
Look to China for major source of Filecoin’s growth: Two people acquainted with the Filecoin scene in China, who did not want to be listed because they work at big cryptocurrency companies told Decrypt, Chinese officials have officially encouraging Filecoin mining because the decentralized cloud storage feature blends into China’s agenda to establish its own internet infrastructure as a defensive mechanism in the current software Cold War.
— ๑ Panda ๑ (@Wolf_ofBinance) March 27, 2021
Also Xinyuan, has invested nearly $100 million in Filecoin mining and Ninth City which is publicly listed on the Nasdaq (NCTY) has spent $12 million on Filecoin mining partnerships since February, are two major Chinese companies that have gotten into the Filecoin mining sector.
Juan Benet, who also developed the Interplanetary File System, founded Filecoin. Benet is a computer scientist from the United States who studied at Stanford University. Filecoin is a decentralized storage mechanism with the aim of storing “humanity’s most valuable records.” In 2017, the project raised $205 million from an initial coin offering (ICO). Binance, Huobi Global, Upbit, OKEx, and CoinTiger are the biggest Filecoin exchanges right now.
Filecoin is a shared data management system. Unlike centralized cloud storage firms like Amazon Web Services or Cloudflare, Filecoin uses its decentralized structure to safeguard the confidentiality of a data’s venue, rendering it readily retrievable and difficult to censor.
Image: Pete Linforth
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