[Bnote] Why the news of the Filecoin Mainnet launch is not especially welcome
[Sonya’s Bnote] Soon Filecoin Mainnet, which is a InterPlanetary File System (IPFS) based storage sharing platform, will be launched. Filecoin told Cointelegraph, a cryptocurrency-focused media company, that it will launch no later than Aug. 29. There are growing expectations that coin prices will rise on the news as the launch of the Mainnet has been delayed for three years. Those that have seen Ethereum prices surging on news that the launching of Ethereum 2.0 is near as well as ADA price rising on news over Cardano Shelly Mainnet could expect the same with Filecoin. The launch of a Mainnet indicates that the platform is operating properly. As such, one could expect the coin prices to double or triple. #Price differences by exchanges vary, prompting suspicions There’s a huge difference on Filecoin prices by exchange. The Filecoin future on Gate.io as of July 28 is traded at $19.28. On Lbank there are three Filecoin futures, whose prices varies from $8.91 to $3.27. On Biki it is traded between $19.21 and $45.96. So why is there a huge difference? According to the Chinese blockchain company Deepchain, there are two reasons. First, it couldn’t be withdrawn, creating a barrier for each and every exchange. Second, because exchanging the coin among exchanges, it is impossible in balancing the price through arbitrage. But also there is controversy surrounding Filecoin. There is a suspicion as to whether the exchanges have stocked up sufficient amounts of the coin. Among the 50 exchanges that the coin is listed on, only nine participated in the ICO or have purchased the coins from those that have participated in the ICO. The other three exchanges are currently operating a mining pool on Filecoin or have a partnership where it will exchange the Mainnet coins later. Others have not given a transparent explanation. #In Korea multilevel mining sales are prevalent In Korea, not many know about the current situation. As Filecoin is not listed on major exchanges in Korea including Upbit and Bithumb, its influence is limited. Among the Korean exchanges, Apex is the only one that has opened pre-trading on Filecoin. However, it only allows transactions within the exchange for six months until the Mainnet is launched while depositing and withdraw externally is restricted. The distributed amount is minimal at 100,000. Filecoin has started to be known here in Korea as there have been several companies that started to sell Filecoin mining machines. There is content on YouTube and several online communities promoting Filecoin mining. According to one seller, the mining machine, whose parts are imported overseas and assembled and sold here in Korea, costs $2,500. The companies claim that in place of their clients they mine one to five coins a day through the machine. The mined coins are then sent to the client’s cryptocurrency wallet and the clients can profit largely once listed on a major cryptocurrency exchange in Korea. #Who will take responsibility on the flooding suspicions? There are too many who are trying to profit from coins whose Mainnet has not yet launched. Exchanges without specific standard are listing the coins without taking responsibility. Companies in Korea that are not actually mining Filecoin are becoming more active on the news of launching the Mainnet. The project team seems to fall short on active measures protecting investors. Those that will be hurt will be investors. It’s questionable if the situation will change when launching the Mainnet when there’s so much chaos surrounding it. Decentralization means dispersing power. Dispersing power also means each individual taking responsibility. If no one is willing to take responsibility, it’s difficult to be optimistic on the future of blockchain.