Why has the price of Filecoin futures been falling (Why isn’t Filecoin rising)?

08/11/2023 01:23 • Daily Digest • 54 views

Why has the price of Filecoin futures been falling? Editor’s note: This article is from the Windwhell community (ID: FHBT18), written by Peipei, and authorized to be reprinted by Odaily Star Daily.

Hello everyone, I am Peipei. Recently, the market has been quite brutal because I saw a data point that the price of Filecoin futures contracts rose to over 3 points an hour ago, and it has now risen more than 10 times. So, this price increase is quite significant, right? Today, I will share with you why it is so popular:

1. Why are the prices of Filecoin futures falling constantly?

1. Since 2017, many friends have been asking us what the difference is in this field. For example, the previously mentioned “How is the price of Filecoin determined?” Many people do not know. But for Filecoin, the price is the same. It is also a factor to consider when you want to sell your coins to buy Bitcoin or short a transaction-the issue of market liquidity. 2. When a large amount of funds enter the market, a phenomenon will occur, “if the funds in the exchange are not large enough, it will cause selling pressure in the secondary market.” This situation is easy to occur. 2. The decreasing amount of funds in the exchange leads to price fluctuations.

It is said that many investors will choose their own way to purchase, of course, some people will directly buy and sell tokens in the exchange. However, in fact, these investors do not have much participation in it, so most people only pay attention to those so-called high-yield projects. (But the current market value is not as good as last year, and the overall growth rate this year is faster than usual). 3. Currently, the most well-known exchange in China is Bithumb in South Korea. Its platform coin, BNB, reached around $60,000 at the beginning of this year. Other mainstream cryptocurrencies, including Litecoin, are also not favored by many investors. Some even said that they are worried about future regulatory sanctions and unable to withdraw, so they have switched their holdings of cryptocurrencies into fiat currency for use. 4. Recently, everyone is concerned about whether there will be a new project launched on the Ethereum network? (In fact, a netizen mentioned last night that if it can be listed on the exchange, you can first look at the official tweets).

So what caused this incident? First, let’s look at the price of Filecoin. Filecoin is a very early network. It has no publicity when the mainnet is launched, nor does it have pre-mining plans. On the other hand, as time goes by, the price has been in a downward trend, so people often think that this is the result of speculative behavior, and once the speculative demand gradually disappears, the price will naturally have a certain callback. And this mechanism mainly makes it more scarce by continuously accumulating user health.

Next, Filecoin itself is a relatively old and somewhat niche concept. Although this concept looks good, it is not suitable for the application scenarios of financial products. For example, companies like UBS Group have launched investment tools specifically for retail investors.

Why isn’t Filecoin rising

Today afternoon, Filecoin announced that it will launch its mainnet on July 1st.

According to the introduction, this project was founded by former Ethereum Foundation engineers and former IPFS China community initiators in September 2016, aiming to build a decentralized storage network and make the process from uploading to downloading data more secure, transparent, and efficient. As the earliest application in the blockchain field, FileCoin is currently in the test network launch phase. However, due to the completely fair and competitive mechanism of Filecoin’s rewards, the price is not high and not suitable for investment. Why isn’t Filecoin rising?

1. Miners believe that there are no good coins to mine more tokens; 2. Exchanges supported by funds have listed their own currencies and attracted a large number of investors to participate; 3. The price increase of Filecoin has prompted many investors to start purchasing these assets.

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Why has the price of Filecoin futures been falling (Why isn’t Filecoin rising)?

Why isn’t Filecoin rising

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