Filecoin Decentralized Storage Project Raises 25% in Red Sea

Filecoin's current price is around $90, its highest price since May 18. According to Datametrics site Nomics, the coin rose from $75 to $96 yesterday afternoon. Despite the tempting green numbers and a staggering $6.9 billion market cap, Filecoin is still below its April 1 peak of $237 two months ago. Filecoin rose while others fell. Bitcoin fell 6%, Ethereum 8% and Dogecoin 15%. These coins collapsed after Elon Musk appeared on Twitter to indicate that he was leaving Bitcoin and found someone else. Tesla's CEO bought billions of dollars worth of Bitcoin in February, but began destroying the currency last month amid concerns over Bitcoin's environmentally damaging proof-of-work mining mechanism. This may explain why Filecoin is soaring. Instead of issuing coins through brute computational power, Filecoin allocates coins to miners who store data on the blockchain. This is because Filecoin works like a decentralized Dropbox: miners can sell spare hard drives as storage. And because the network is decentralized, it is difficult to get this data off the network. Less energy-intensive than Bitcoin, but the network was designed to browse hard drives like there's no tomorrow. A similar network, Chia, has caused massive SSD shortages in Asia.

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