Filecoin (FIL) was once a star project in the cryptocurrency field, focusing on decentralized storage, igniting the market with its grand technological narrative and high fundraising, but ultimately became a typical case of a pump-and-dump due to delays in implementation and a plummeting coin price.
The project raised over $257 million through an ICO in 2017, setting a fundraising record in the blockchain industry at the time, and investors were full of expectations for its vision to "reconstruct the global data storage system." However, the project team repeatedly postponed the launch time under the guise of "technical optimization," delaying it from the original 2019 to October 2020. During the three-year waiting period, market enthusiasm was repeatedly consumed, laying the groundwork for market manipulation.
In the early days of its launch, the price of FIL briefly surged to $237, attracting a large number of retail investors to chase the price high. However, the actual progress of the project was far from expectations: the deployment efficiency of decentralized storage nodes was low, and there were very few real commercial application scenarios, with the so-called "technological breakthroughs" remaining largely at the white paper level. At the same time, a large number of tokens unlocked by the project team were secretly sold off, triggering a catastrophic price collapse, which fell to around $2, a drop of over 99%.
More critically, FIL's mining mechanism design has flaws, with early entrants being major miners who hold a power advantage. Retail miners not only face high costs for mining machines and staking but also have to bear the dual losses caused by falling prices. This hype, driven by capital and wrapped in technological gimmicks, ultimately left countless retail investors with nothing to show for their investments and exposed the essence of the cryptocurrency market's "narrative over technology."
The project raised over $257 million through an ICO in 2017, setting a fundraising record in the blockchain industry at the time, and investors were full of expectations for its vision to "reconstruct the global data storage system." However, the project team repeatedly postponed the launch time under the guise of "technical optimization," delaying it from the original 2019 to October 2020. During the three-year waiting period, market enthusiasm was repeatedly consumed, laying the groundwork for market manipulation.
In the early days of its launch, the price of FIL briefly surged to $237, attracting a large number of retail investors to chase the price high. However, the actual progress of the project was far from expectations: the deployment efficiency of decentralized storage nodes was low, and there were very few real commercial application scenarios, with the so-called "technological breakthroughs" remaining largely at the white paper level. At the same time, a large number of tokens unlocked by the project team were secretly sold off, triggering a catastrophic price collapse, which fell to around $2, a drop of over 99%.
More critically, FIL's mining mechanism design has flaws, with early entrants being major miners who hold a power advantage. Retail miners not only face high costs for mining machines and staking but also have to bear the dual losses caused by falling prices. This hype, driven by capital and wrapped in technological gimmicks, ultimately left countless retail investors with nothing to show for their investments and exposed the essence of the cryptocurrency market's "narrative over technology."
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