The cryptocurrency market is currently consolidating after a heavy retracement. Bitcoin and Ethereum saw lower prices, mostly due to profit-taking from a previous heavy uptrend. On the other hand, other tokens such as Filecoin (FIL) saw a price surge of more than 10%. What is Filecoin and does it have the potential to boom further in the coming weeks? In this article, we’ll talk more about what Filecoin up is and if FIL is a good buy in the current market conditions.
What is Filecoin (FIL)?
Just as its name suggests, Filecoin is a project that aims to decentralize data storage, making it publicly available. the project is a B2B and B2C decentralized storage network whose goal is to reinvent the public data storage market. Filecoin was invented by Protocol Labs, an open-source laboratory. The first whitepaper was published in July 2014 by Juan Benet who is a computer scientist.
Filecoins wants to decrease the volume of big players in the currently centralized data storage market. According to Filecoin, these big players are the ones who dictate storage prices, jurisdictions and take the liberty of choosing which exact customers they want to provide with their services.
The network mainly offers an open market with completely new storage and economic model, with a great use for public data like open access data, historical archives, websites, games, insurance, and many more. In this new economic model, the prices for storage will decrease when supply and demand grow. So we are talking about incentivized data storage market, which doesn’t limit to any location worldwide.
FIL jumps by more than 10%!
As the crypto market retraces, FIL saw an impressive jump of around 10%. Looking at the technicals of FIL, we can’t but acknowledge why investors are rushing to buy FIL. Its price reached strong support of USD 50 and is currently preparing to reach potentially its previous high of around USD 200.
Buying at the current level is the perfect entry into this token. On the other hand, traders and investors should place adequate stop-loss levels that reflect their risk appetite. A sensible SL would be below USD 40.
