Don't tell me you haven't sold out yet??? From high expectations to a mess: The top 10 'death knells' of $FIL 's collapse (1~3) 1. Token release mechanism out of control, selling pressure like a mountain
The release mechanism of Filecoin's token FIL has serious flaws. In the early stages of the project, a large number of tokens were allocated to private investors, the team, and the foundation, gradually unlocking as the mainnet went live. Under the SAFT agreement, early investors' tokens were unlocked in phases, especially during key points in April and October 2021, leading to a massive influx of tokens into the market and creating immense selling pressure. With approximately 350,000 FIL released linearly each day, the market has long been in a state of oversupply, with prices facing sustained downward pressure, making it difficult to shake off the shadow of selling pressure even during bullish market conditions.
2. Slow technological implementation, storage efficiency becomes a pain point
Although Filecoin envisions a revolution in distributed storage, actual technological implementation has been slow. Compared to centralized cloud storage giants (such as AWS, Alibaba Cloud), Filecoin's storage efficiency is low and costs are high, making it difficult to meet enterprise-level data storage needs. The network's storage performance is unstable, and data retrieval speeds are slow, resulting in a poor user experience. In an era of rapid technological iteration, Filecoin has failed to optimize its core technology in a timely manner, causing it to gradually lose its competitive edge in the market, struggling to attract genuine users and traffic, and thus unable to support the value of the token.
3. Weak ecological development, lack of killer applications
The ecological development of Filecoin is far below expectations, lacking killer applications that can attract users and developers. Although the launch of the Filecoin Virtual Machine (FVM) brought smart contract functionality, it has not spawned widely influential and practical application projects. Compared to other public chain ecosystems (such as Ethereum's DeFi, Solana's blockchain games), Filecoin's ecosystem appears very thin, unable to form strong user stickiness and ecological appeal. Without the support of practical application scenarios, the demand for FIL tokens remains at a speculative level. Once the market cools down, prices quickly drop. $FIL
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