Don’t scream ‘April Fools’ if you happen to spot Filecoin in the world’s top ten cryptocurrencies by market cap while scrolling through our Rankings page today: The file-sharing has, indeed, slithered into that spot after a massive price surge over the past week.
The FIL token now trades at $228 and its 63 million circulating supply puts the total market cap of Filecoin a bit above $14 billion. But over a billion FIL are supposed to be emitted in the future, meaning its fully diluted valuation (FDV)—the value of the network if all tokens were available in the market today—is a staggering $453 billion.
That is nearly 0.12% of the global wealth. As per a 2019 report from renowned Swiss bank Credit Suisse, the total wealth on the planet, including all assets, real estate, and financial instruments, is $360 trillion.
“The fully diluted market cap of $FIL is now 0.1% of the total global wealth,” remarked former Messari product head Qiao Wang on Twitter.
Some, like Chinese blockchain journalist Colin Wu, attributed the rise of FIL to the token’s popularity in China, where most of the token’s trading volume seems to be derived from. “China is crazy for Filecoin, with a 24-hour increase of more than 30%, reaching a maximum of $236. The 24-hour trading volume of FIL in Huobi, China’s largest exchange, reached $24.2 billion,” said Wu in a tweet.
What is Filecoin anyway?
For the uninitiated, here’s some background—Filecoin is a blockchain-based file-sharing network that allows users to rent out the spare space on their computers and buy storage space on other computers. FIL is the centerpiece of this arrangement and is used to incentive the users who power and maintain the network.
This is unlike cloud storage companies like Amazon Web Services or Cloudflare, which are prone to the many problems of centralization. Filecoin’s decentralized nature helps protect the integrity of a data’s location while making any stored data to be easily retrievable and hard to censor.
In addition, the use of a decentralized framework allows people to be their own custodians of their stored data, as well as making the web more accessible to people worldwide. Participating in the Filecoin network by mining and storing is directly related to winning more block rewards, and Filecoin incentivizes participants to act honestly and store as much data as possible.
The project’s an old-timer as well. The Filecoin project was first introduced in 2014 via an ‘initial release’ and even did an initial coin offering (ICO) for its FIL tokens in August 2017, an event that saw it raise over $200 million in just 30 minutes.
And if today’s price surge is anything to go by, it looks like the show is still going on.
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Source: Filecoin reaches FDV of 3 billion—and that’s 0.1% of the world’s wealth