Filecoin Miner Strike Faces Difficulties

by in Cryptocurrency News

Filicoin facing difficulties

Recently launched Filecoin project is facing difficulties as miners use a token model for collective plugs, which isn't economically practicable.

The long-waited Filecoin data storage project launched last week after 3-year since $250 M presale and ICO. A huge amount of Chinese FOMO advanced token FIL cost over $60 but the crash has already been noticed. Some even labelled the project a Ponzi (scam).

FIL tokens are hard to mine. The process requires a lot of expensive hardware because of the blockchain complex structure. Besides, miners must stake tokens to provide their drive space which goes public on the network. Thus, the system is built so that miners have to buy tokens before they mine them. The whole model of tokenomics needs further examination.

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Miners began protesting against the system. They expressed their opinions on social media. During the weekend FIL prices have fallen around 50% from that peak to around $30. If the mining issues aren't solved, Filecoin may go down.