Is Filecoin Overheated?

Is Filecoin Overheated?

By Sir Loin | The Crypto Shenanigans | 2 Apr 2021


Investing is all about numbers and weighing risks against potential returns.

What is the assessment of the project?
To what grade does it have a chance to rise?
What affects its growth?
What will happen in the competitive field?

This is all rough ... and it’s more of a cross-check factor whether the expectations are too high.

The venture phase of blockchain projects is no exception.

It does not matter whether you are directly investing in a project or buying someone's previously made investment (contract) on the OTC secondary market, the key question (cross-check) is what the purchase is worth and what is the potential for the growth of this project's assessment.

And here is Filecoin - a project that I would be very afraid to enter ... earlier and now.

And here is why.

The price of the Filecoin token is now around $125
The estimate (market capitalization (or market cap)) = $7.7 billion 
So far, everything seems to be looking good

But now we look further.

The number of issued tokens in circulation is now ONLY 61.9 million out of 2 billion tokens that will be gradually released to the market! 

That is, only 3% are now on the market.

Now, if we calculate the full capitalization of the project (fully diluted market cap), simply multiplying the current price by the total volume of 2 billion tokens and we get the maximum potential project estimate of $250 billion. 

This is even more expensive than the Ethereum valuation! 

And it's NOT in some future, but NOW!

Based on this, ask yourself this question: “What will happen to the price of the token when the circulation on the market is not 3% of all tokens, but 6%? Or 12%?” 

Is Filecoin a bear?

 



The Crypto Shenanigans
The Crypto Shenanigans

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