Filecoin ICO Pauses at $4.68

It appears that Filecoin did significantly well after the launch this week. They appear to have paused their ICO to catch up. Their page on CoinList says they have raised $187 million, but they themselves on Twitter claim the figure is around $225 million. This makes the current minimum price per token somewhere around $5, although again, on CoinList, there is a definite figure given: $4.68.

Now Protocol Labs has raised a significant sum of cash, and all of this adds up to a much more valuable mining network and product at the outset. None of it necessarily has to effect the cost of the services being offered, since the tokens are divisible themselves. Part of the reason the cost of the tokens is being driven up is that pre-sale buyers (who participated in the “Advisor Sale”) were given a price of 75 cents per token. Their vesting schedule is twice as long as others, however.

This massive pile of cash could be only the beginning for Protocol Labs as regards Filecoin, since they did not limit the amount of fiat capital they could raise, only the amount of tokens they will in turn issue. The classic contest between the technician and the speculator emerges and the viability of the product becomes increasingly less important.

In any case, Twitter had some questions.

“Fairness”

So, currently Filecoin/Protocol Labs are taking some heat for raising so much money. People are curious as to whether they actually need more money than they can properly calculate as it comes in the door. Yet, if the sale were to close at a fiat cap, then people would charge that the unusual requirements (as ICOs go) of becoming “accredited” in order to invest made it what amounts to a closed sale in the first place. Therefore, Protocol Labs sort of has no choice but to keep the sale open for the duration and issue coins as it has already planned to do.

Cloud Storage Wars and Waves

Chart from Thursday afternoon courtesy of Coinmarketcap.com

 

Investors were given the opportunity to sign up for a platform which then will allow them to request approval to make an investment into Filecoin, a Storj rival from Protocol Labs. If we’re looking for an explanation as to the 24 hour doubling of Storj, we need look no further. People who haven’t got time for all that decided to bet on Storj instead. On the other side of it, Siacoin, a slightly different approach to decentralized cloud storage, dropped a couple points overnight.

Filecoin may have some technical bells and whistles that Storj does not currently offer, but ultimately there is good reason to be suspicious of Filecoin as a decentralized or community project in the first. The demands for “accredited” investors and the like make it ripe for a quick sale to a larger outfit – perhaps a long-term play by Protocol Labs to give themselves even more runway to pursue their larger goal of a fully decentralized Internet. So while the research and development that go into Filecoin will long term be incredibly important, people are sharding all day on Storj at present. The thing works, there’s a low barrier to investment and participation.

Thus, price rise.

Author:

Website: http://phm.link

P. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link