Why are the prices on the FIL trading platform different (why is FIL so expensive)?

08/13/2023 05:30 • Tech Trends • 69 views

Why are the prices on the FIL trading platform different? What will be the price of Filecoin after the launch of its mainnet? We know that FIL is a decentralized storage network, but due to factors such as the lack of an official FIL token issuance mechanism, no private placement, and no team reservation, Filecoin will also encounter some problems after its launch (such as whether miners can release the blocks they mined in advance). If users want to transfer assets, they need to apply for funds from exchanges and receive FIL as a reward. And for investors, they need to purchase FIL through exchanges to complete their investments. However, this does not mean that exchanges do not make profits. Therefore, there are many exchanges on the market that sell FIL to other trading platforms or directly sell them in the secondary market to make profits.

Why is FIL so expensive?

According to Coindesk, after the launch of the Filecoin mainnet, the price has risen from $6 to $7. But why has the price skyrocketed in less than a month after the launch? There are two reasons: firstly, the Filecoin project did not give miners enough time to invest more funds; secondly, the total amount of FIL is too small (only 200 coins), so many investors believe that its circulation is too low to be exchanged for FIL to pay for operational expenses. Moreover, there has been a large amount of FIL dumping behavior.

Why is this the case? Firstly, FIL is a token in the storage market, and if a user is unwilling to sell a portion of their tokens, they will be permanently locked. This will cause significant losses and eventually lead to the collapse or even destruction of the entire ecosystem. Secondly, FIL is a decentralized and permissionless network, so it does not require any third-party involvement to receive rewards or collateral to support the network’s development. There are also some challenges that need to be overcome, such as dependence on protocols, high coding thresholds, and high costs of interaction with other smart contracts. Finally, it still requires developers to contribute to ensure the continuous development and stable growth of its community.

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Why are the prices on the FIL trading platform different (why is FIL so expensive)?

Why is FIL so expensive?

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