Filecoin Update: Will FIL 10X?! Complete Review!

Over the last year or so we've seen Narratives like AI gamey and deepin take Dozens of cryptocurrencies to new Alltime highs so far it's been mostly Hype but eventually it will turn to Actual adoption and that means all the Cryptos in these narratives are Eventually going to require Infrastructure specifically Decentralized data storage and Computation filecoin is the leader in This Niche by a wide margin and that's Why today we're going to explain what Filecoin is bring you up to speed on the Project's most important updates and Tell you just how much potential its Phil coin could have my name is guy You're watching coin buau stay Tuned I'll start by saying that nothing In this video is financial advice it's Purely educational content that's meant To inform you about this crypto project And I'll also note that nobody at the Coin Bureau holds Phil at the time that This video was posted and we will be Objective in our analysis that said it's Been almost 3 years since we last Covered filecoin so we reckon a Refresher is in order so filecoin was Founded by computer scientist Juan Ben In 2017 though it's technically been in The works since 2014 now filecoin is Technically the incentive layer for the Interplanetary file system or ipfs more

About that in a second now the IP TFS And filecoin were built by protocol Labs A US software company founded by Juan in 2014 and filecoin ongoing development is Coordinated by the filecoin foundation a US nonprofit the goal of both entities Is to create the technology required for A truly decentralized internet filecoin Is or rather was famous for holding the Largest completed Ico to date in late 2017 it raised almost $260 million across four Ico rounds in August and September 2017 the largest of Which raised over $25 million filecoin Is also Infamous for launching its main Net 3 years later in October 2020 as I Just mentioned filecoin is the incentive Layer for the ipfs the ipfs can be Simply understood as a peer-to-peer file Sharing protocol like bit torrent the Difference though is that the ipfs Retrieves data based on the unique Address assigned to it whereas bit Torrent retrieves data based on where It's being stored this small detail Makes it possible for the ipfs to create A truly well interplanetary file system For example say you wanted to download An image well instead of needing to Retrieve it from the server on Earth Where it's being stored it could Theoretically Ally be retrieved from Anywhere where that unique address is Detected by the ipfs obviously there

Needs to be some incentive for people to Provide storage space for the ipfs and This is where file coin comes in it Makes it possible for storage providers To sell their storage space to users the Price of storage depends on supply and Demand and can be as low as a few cents Per terabyte per month note that this is Significantly cheaper than centralized Cloud storage Services naturally users Pay for file coin storage using the fill Coin when a user pays for storage on Filecoin the Associated Storage provider Must submit a proof to the filecoin Blockchain that they've stored the data This is called proof of replication and It's often misunderstood as being file Coins consensus mechanism similarly Storage providers must periodically Submit proofs to the file Coin Block Chain that they're still storing the User's data and this is called proof of SpaceTime and it's likewise Misunderstood as being file coins Consensus mechanism file coin's actual Consensus mechanism is called proof of Storage logically in proof of storage The likelihood of being selected to add A block of transactions to the filecoin Blockchain and earn fill depends on how Much storage capacity you've committed Kind of like proof of stake the catch is That filecoin technically consists of a Chain of tip sets not blocks per se and

If you want more info there then you can Refer to the link in the description now To ensure that storage providers process Transactions correctly and honor their Storage contracts they must lock a Portion of Phill coins these fill coins Are slashed I.E burned if storage Providers try to manipulate transactions Or fail to conduct the two storage Proofs I mentioned a few moments ago and As as you might have gathered by now Phil is the native cryptocurrency coin Of the filecoin blockchain it's used to Pay for transaction fees and storage Fees as of March last year it's also Possible to lend Phill to storage Providers for them to lock up and Lending Phil currently yields around 8% Per year not bad anyways Phil has a Maximum supply of 2 billion which was Distributed as follows 20% to the Founders protocol labs and the filecoin Foundation 10% to investors and the Remainder to storage mining rewards Notably the release of storage mining Rewards depends on network performance And I'll also note that around 40 Million Phil have been burned so far by Malicious storage providers the Approximate vesting schedule for Phil Can be seen here and you'll notice it's Quite aggressive and lasts for a very Long time this strong strong strong and Steady supply growth has played a role

In suppressing Phil's price but it Appears that the demand side of the Equation is starting to improve more on That in a moment and by the way if You're enjoying the video so far be sure To smash that like button to give it a Boost And subscribe to the channel and Ping that notification Bell so you don't Miss our next altcoin update I was Trapped inside a cage a cage made out of The Daily Grind I was so unfulfilled After bu like a blank sheet of A4 paper Something was missing from my life but I Didn't know what but then I found what I've been missing the coin Bureau deals Page was the answer to my prayers it had Everything I needed to make me complain Exchange sign up bonuses of up to $50,000 the biggest discount on the best Hardware wallets trading fee discounts Of up to 60% on the best crypto Exchanges exclusive altcoin Alpha thank You coin Bureau for bringing me back to Life now it's safe to say that a lot has Happened since we last covered filecoin So we won't have time to go through Every single update here and more Importantly we couldn't find information About some of these updates as the Websites for file coin's official blogs Failed to load due to ipfs we'll come Back to that don't worry anyhow if if You're a super fan of the coin Bureau You'll recall that we last covered

Filecoin in late March 2021 at the time Phil's price was going parabolic in April 2021 it was revealed that this Pump was due to Chinese retail investors Aping into fill and this made sense as Many storage providers were based there If you've been in crypto since 2021 You'll recall that the Chinese Government cracked down on all forms of Crypto mining that year and this appears To have impacted filecoin as well since Many storage providers subsequently Migrated to Singapore and elsewhere much Like the Bitcoin Miners did what you may Not recall is that there was actually a Second wave of crypto crackdowns in China later that year specifically in September 2021 the Chinese government Effectively cracked down on altcoins by Outlawing all sorts of trading Activities as you'll soon see this seems To have suppressed Phil's price anywh Who in October 21 the flow blockchain Integrated file coin storage for its Nfts this is more significant than you Think because meta announced in 2022 That it would be testing its nfts on Flow although this initiative was Dropped last March it could be brought Back during the bull market now in November 2021 filecoin revealed the Filecoin virtual machine or FM which Would support its smart contract Functionality and open the door to

Computation on top of file coins stored Data the fvm launched on filecoin in March 2023 coincidentally the same month When meta dropped its nfts in February 2022 meanwhile protocol Labs unveiled Its Launchpad which would seek to Incubate crypto projects trying to Decentralize the internet particularly Those leveraging ipfs and filecoin Filecoin also deepened its partnership With polygon to store data related to Nfts and the metaverse in May 2022 the Filecoin foundation partnered with Military arms manufacturer loed Martin To literally take the ipfs to space this Happened in January of this year with Loed Martin launching an ipfs compatible Satellite which then communicated with Servers on Earth pretty crazy the Craziest part though is that this Partnership was reportedly penned at the World economic forum's annual meeting in Davos for context the Davos conference Is basically where the world's Elite Decide what they're going to do and you Can find out what they said this year Using the link in the description now in October 2022 filecoin launched its Content delivery Network dubbed Saturn Making it easier to retrieve data being Stored by storage providers filecoin Also launched the decentralized storage Alliance an initiative which seeks to Help web 2 companies transition to web 3

In February 2023 protocol labs announced That it had cut more than a fifth of its Workforce citing the quote extremely Challenging economic downturn caused by High inflation and high interest rates At the time Juan made the chilling Prediction that this crypto be Market Could be longer than the others then in May 2023 ipfs announced the launch of Durine a mobile app that's compatible With its decentralized storage Network This was a big milestone as until that Point it was hard to extend ipfs Functionality to mobile devices ipfs Also noted that the app would serve as a Sandbox for developers building mobile Apps with ipfs filecoin also announced That it had partnered with the brave Browser to add automatic nft backups to Ipfs in the brave wallet for reference Brave is a privacy preserving browser Based on Chrome that's very popular in Crypto the browser currently boasts Around 70 million monthly active users And Counting another thing that happened In May 2023 was the SEC warning Grayscale that Phil was an unregistered Security according to the regulator's Everchanging criteria as most of you Will know the Practical effect of being Labeled as security is being delisted From crypto exchanges in the US not Surprisingly Phil was delisted from a Series of us exchanges shortly after

What was surprising was that the SEC had Gone out of its way to single out Filecoin this was surprising because the SEC again stated that Phil was an Unregistered Security in its lawsuits Against coinbase and binance one month Later what this suggests is that the SEC Has been actively targeting filecoin for Whatever reason our best guess is that It has to do with the fact that file Coin's primary entities are based in the United States and filecoin itself raised Big bucks this makes it easier for the SEC to go after filecoin and try and get Its grubby paws on all that cash Regardless in September 2023 filecoin Partnered with consensus for those Unfamiliar consensus is one of the Biggest companies building on ethereum And was actually founded by ethereum Co-founder Joe Luben this partnership Foreshadows more filecoin Integrations In ethereum's ecosystem then in November 2023 protocol Labs announced that ipfs And another project they'd create ated Called lib P2P would be spinning out From the company in plain English they'd Be launching their own nonprofit Organizations and would no longer be Directly under the control of protocol Labs underscoring their growth in January of this year meanwhile protocol Labs partnered with chainlink to our Understanding the partnership involves

Collaboration between the development Initiatives of both projects such as Protocol Labs aforementioned Launchpad this should result in more Innovation for both filecoin and chain Link then just last month glyph a So-called liquid leasing protocol on Filecoin raised $4.5 million from crypto VCS to expand its offerings this is the Phil lending that I was referring to Earlier per the liquid leasing Terminology glyph not only lets you lend Your fill to storage providers but also Use that lent fill in defi via Ifill if You're unfamiliar with the concept of Liquid staking be sure to check out our Video about Lio finance using the link In the description by the way now given The mix of bullish and bearish updates Around Phil over the last 3 years its Price action shouldn't really come as a Shock Phil has essentially been trading Sideways since last spring though it has Experienced a few short-lived rallies Along the way at the time of shooting This video it's in one of those as I Hinted earlier Phil's lackluster price Action is not just due to the mix of Bullish and bearish headlines but also Due to the enormous amount of Supply That's entered the market over the last 3 years historical data from coin market Cap suggests that Phil's supply has Increased by almost 10x since March 2021

To be exact Phil's supply has increased From around 60 million to over 500 Million for a grand total of around 460 Million assuming an average price of $10 Per fill during that period which is Conservative this works out to nearly $5 Billion of cell pressure over the last 3 Years the key words there however are Over the last 3 years when you break it Down by month you're dealing with Roughly $140 million of cell pressure Every four weeks which is still quite a Bit considering the demand side of the Equation and only around 8% of filecoin Storage capacity is being rented out to Be ex in fact filecoin is currently Storing around 1.9 xbes of data compared To its capacity of almost 25 xtes file Coin's official storage statistics note That there are only 1,700 storage Providers servicing fewer than 1,000 Users most of these users seem to be Institutions that were part of an Incentive program put simply there Doesn't seem to be any organic demand For fill and this is something something That's been pointed out by many crypto Media outlets and it's a problem that Even Juan alluded to in one of his Presentations he said that if all the Data in crypto was stored on filecoin it Wouldn't use up its capacity this is why Filecoin has been trying to increase its Scope of Demand by wandering out into

The non- crypto world with stuff like That locked Martin partnership the Problem there is that most of filecoin Storage providers are apparently Chinese Something that's also been highlighted By the media of course this has made Many traditional institutions Particularly those based in the US Hesitant to store their data on filecoin Even with the generous incentives from Protocol labs and the filecoin Foundation this is presumably why Filecoin seems to be starting to dabble In niches like defi that are arguably Inconsistent with its core Mission Consider that the glyph protocol has Amassed almost $300 million of fill in Less than a year you could say that this Translates to up to $300 million of Buying pressure for fill from those who Are looking to earn a yield and also Accumulate the points for the airdrop Glyph is reportedly planning besides the Fact that most of this fill could very Well be coming from the storage Providers themselves the fact of the Matter is that filecoin isn't exactly Ground Zero for defi in other words it's Unlikely to be competitive with all the Other existing and emerging defi Ecosystems on other smart contract Cryptos this leaves speculation as Phil's main demand driver and it's Certainly good news that we've seen

Speculation pick up recently the problem There though is that Phil already has a Market cap of almost $5 billion it's Hard to see how Phil could pull more Than a 10x between now and the crypto Bull market top the caveat is that you Can maximize these profits if you're Using the right exchanges and the coin Bureau deals page happens to have Trading fee discounts of up to 60% and Sign up bonuses of up to $50,000 on the Best crypto exchanges these deals are Only available for our viewers and they Won't be around forever folks so take Advantage of them before they're gone Using the link in the description now Whether Phil can pull a 10x or more Ultimately depends on file coin's Upcoming Milestones filecoin actually Appears to have multiple road maps and One has done many presentations about File coin's future plans as well the Thing is that not all of these road maps Seem to be up to date for starters we Have the protocol Labs road map from 2023 whose Milestones seem to have been Met the biggest one was the launch of The fvm which you'll recall occurred Last March it's now likely that protocol Labs won't be releasing any more road Maps due to SEC scrutiny similarly the Filecoin foundation put out a community Road map in 2022 with detailed Milestones it's not clear how many of

These Milestones were met though what is Clear is that the road map was abandoned Due to low engagement something revealed By the comment section on the roadmap GitHub on that note ipfs also used to Have a road map on GitHub but scrapped It in 2023 since there are quote Multiple companies and teams building Ipfs implementations when you combine This with protocol Labs spinning out Ipfs it gives the impression that an Ipfs airdrop of some kind is in the Works as for filecoin itself meanwhile The comments section from the filecoin Foundations GitHub road map cites one's Blog post about file coin's master plan As the new de facto road map this road Map was published in November 2022 and It consists of three parts each with its Own set of technical Milestones the First part is scalable data storage I.E Maximizing file coin storage and Retrieval capacity the second part is Massive data on boarding I.E increasing The number of users storing data on Filecoin and the third part is making Data useful I.E allowing for computation On file coins data using the fvm lo and Behold the fvm seems to have a road map Of its own buried deep in file coins Documentation it appears that all of the Milestones have been met already it also Reveals that the fvm introduced evm Compatibility meaning that it's easy for

Ethereum developers to build defi stuff On filecoin go figure as a cherry on top Filecoin released a road map for Filecoin plus the incentive program That's onboarded most of file coin's Users while the road map doesn't seem to Have any specific Milestones per se the Key takeaway is that it wants to Decentralize data storage at the Geographical Level news flash but this Is a tacit admission that file coins Lack of adoption is perhaps largely due To the over representation of Chinese Storage providers not only that but it Simultaneously implies that much of Filecoin storage provision is still Coming from China despite the Government's hostility to crypto there Note that Bitcoin mining is still Happening there too when it comes to Juan's roadmap presentations meanwhile There are honestly too many Milestones To note here one himself admitted that Each of these Milestones will require Its own crypto project and even Suggested that there will be airdrops to Fill holders and lenders in the future This was back in April 2022 now one of The Milestones that stuck out for us was Scalability which Juan himself seems to Be focused on that's because he's aware That as filecoin grows it will need to Become capable of handling more storage And retrieval requests he reckons

Filecoin will need to scale to trillions Of transactions per second for this and This brings me to the challenges that we Foresee for filecoin the first challenge Is competition it's easy to forget that Filecoin has technically been in the Works since 2014 back then it had little To no competition by the time it Launched in 2020 though many other Competitors had already emerged the Advantage that file coins competitors Seem to have is that they decided to Focus their efforts and even their Architectures on addressing a specific Niche by contrast filecoin seems dead Set on wanting to store all of the World's data and that's arguably an Unrealistic and unattainable goal to Have speaking of which you should know That there's a website called the web 3 Index which keeps track of how much Revenue crypto projects like filecoin Are generating Once Upon a Time filecoin Was on that list somewhere along the Line though it was removed for Unspecified reasons now we suspect that This is because filecoin wasn't Generating nearly as much in the way of Fees when compared to its peers there Doesn't seem to be any other likely Explanation because filecoin is Partnered with live Pier the video Encoding crypto project that created the Web 3 index they wouldn't remove

Filecoin without good reason and this Ties into filecoin Second Challenge and That's adoption now this challenge is a Double-edge sword on one Edge filecoin Doesn't have very much organic adoption Which is bad for its growth on the other Edge it seems that filecoin can't Currently scale enough to support Exponential growth as I hinted earlier We were having issues loading many of The resources associated with filecoin Due to them being hosted on ipfs Regardless of the browser or device from Our perspective this was either due to Ipfs not working properly or to not Being able to scale to meet demand Neither of the these are good now to be Fair filecoin and ipfs are technically Two different things and to be honest we Have yet to try storing data via Filecoin just because the process Appears to be incredibly cumbersome Regardless of the app you use by Contrast competitors like arweave allow For one click or even drag and drop Storage and as a fun fact the number of Potential users you lose for an online Service increases EXP exponentially with Each click they must take the number of Steps involved with storing data on Filecoin could very well be the biggest Hurdle to its adoption and never mind The whole process of retrieving this Data and I'll quickly note here that

Nobody at the coin Bureau currently Holds arweave nor any other filecoin Competitor for that matter anyway this Relates to file coin's third Challenge And that is regulation like with salana The SEC seems to have an act to grind With filecoin whereas the SEC scrutiny Of salana likely comes from the Regulator's failure around FTX its Scrutiny of file coin seems to come from The regulator wanting to look good being Able to potentially Force protocol labs To pay a fine worth hundreds of millions Of dollars would be a great achievement For an entity like the SEC hence why it Went after Ripple instead of going after Actual crypto frauds and scammers Whatever the case filecoin seems to be On thin nice in the United States and Given this apparent fact it's quite Possible that protocol labs's efforts to Spin out its other projects have less to Do with decentralization and more to do With trying to protect its other Creations in the event of a Crackdown The most worrying part of the situation Is that one doesn't seem to care about This risk to put things into perspective He's been doing presentations about file Coins road map all throughout 2023 long Before and after after the sec's Scrutiny of filecoin went public perhaps Though he knows something that we don't Something that suggests filecoin is

Actually safe from an SEC Crackdown I Certainly hope he does in some then Filecoin is a promising crypto project That's been struggling to find a niche It can capitalize on and has been trying To expand its offerings to increase its Adoption even with the challenges Filecoin faces Phil could still perform Well during this bull market Market if It manages to benefit from other Narratives for the time being though it Seems that filecoin is poorly positioned For this possibility if the blowoff top Phase of the crypto bull market is in Fact beginning as many believe then Filecoin may not have time to adjust and Note that you can find out what's been Going on in the crypto Market using the Link down Below and that's all for today's video Folks so if you found it informative be Sure to smash that like button to let us Know if you want to stay informed about Altcoins subscribe to the channel and Ping that notification Bell and if you Want to inform others about filecoin Then be sure to share this video with Them thank you all so much for watching And I will see you in the next One

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