Why Filecoin's hyped token launch was a multimillion "failure"

Decentralized file-sharing project Filecoin launched last week after years of development and a jawdropping $200 million ICO. But critics and miners are calling it a failed launch.

Its fees are turning out a pain point-data shows miner prices to use Filecoin network cost over $40,000, in contrast to centralized alternatives like Amazon Web Services which charge a fraction of the amount.

For the uninitiated, Filecoin was announced and founded by Protocol Labs in 2017 as a file-sharing and content distribution service.

Its FIL token launched last week and zoomed to a valuation of over $900 million within hours, making it the fastest such project to do so.

FIL saw an initial pump, but traders soon took to shorting the token en masse, driving prices down as much as 40% on the first day of trading.

Despite the project's fully working product, the anonymous Twitter profile "Nico Deva" pointed out Filecoin miners were no longer participating in the network due to high upfront costs and.

Calculations may be off somehow but sure thing is many miners have stopped adding more capacity and drives are idly waiting, as you can see the daily power growth of 0 for many top miners pic.

Mechanism Capital partner Andrew Kang stated the Filecoin team either needed better token advisors for its distribution plan or was a "Ponzi at 1000x scale."

1B+ was spent on Filecoin mining machines in China.

100M+ of FIL SAFTs were bought OTC off western ICO investors by Chinese $. Either this is one of the greatest economically engineered pumps in crypto history, or Filecoin needs better economics advisors.