Yesterday, after years of waiting, Filecoin (FIL) finally launched, Funded by legendary venture capital companies like Sequoia Capital, Andreessen Horowitz, and Union Square Ventures, the project is a blockchain-based data storage and data recovery network. Users can pay FIL to store their files on secure storage miners, which facilitate the network.
The project, like many other hyped-up coins, launched at absurd valuations. The cryptocurrency quickly spiked above $100 on the exchanges that supported it, meaning it had a fully-diluted market capitalization in excess of $200 billion — yes $200 billion.
Filecoin has begun to crash as investors have realized that it may be overvalued on a long-term basis. Short positions have been opened en-masse, driving the coin dramatically lower on futures exchanges such as Binance and FTX.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom Filecoin Crashes on Top Exchanges
Filecoin has crashed dramatically since trading began yesterday on top exchanges such as Kraken, FTX,