Daily market commentary from 19.10.2020

An overview of what is happening in the crypto markets, summarised daily by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.

Market commentary

Good Morning!

FIL$ – Filecoin

When we wrote about the main net launch of FIL$ there was this odd price difference in the futures. Also, some people mentioned that the fully diluted market capitalisation was way too high (roughly $230 billion).

Nevermind, I thought, let’s give this project the benefit of the doubt, and so I waited a few days to see how things would evolve. As it turns out, there seems to be bigger issues with this project, which triggered a real shit show. This Twitter thread summarises the situation very well.

My 50cents:

I see the use case for this project. Especially with governments also pushing into the digital space (e.g. CBDC) it makes sense that there is a possibility to file/store certain data in a decentralised way. Combining business (big data centre) and retail (your own home device) adds to the “decentralised marketing slogan”.

Like in almost every launch (main net or just a new token) the decentralised factor is almost non-existent. It needs time until a token and its ecosystem is truly decentralised. I think this is one of the points the Filecoin team has not fully thought through. When I read the Twitter thread above, it looks like you need to be a well funded IT-hardware professional to be able to participate as a file/storage provider. Plus, the current tokenomics will screw you as a “miner”.

As I said, I like the concept and since we are in an open source world I will look out for forks that tackle some of the issues Filecoin is experiencing.


About the author

Patrick Heusser

Patrick Heusser is a Senior Trader at Crypto Broker AG. Prior to joining the company, Patrick worked as an Interest Rate Trader at UBS and held various positions in the IRCC (interest rate, commodity and foreign exchange trading) in London, New York, Singapore and Zurich. Patrick is an expert in trading and risk management. He also gained experience in other areas, such as building start-up companies. Patrick has a degree in banking from a business school. He has also taken various courses in technical chart analysis.