Answers about Filecoin ICO
*What is it?
Filecoin is a decentralized storage network that uses the InterPlanetary File System (IPFS) to secure and store data. Simply, users can get paid to donate their unused hard drive storage space. Protocol Labs is behind IPFS and runs Filecoin project.
Ok but… what is the IPFS? This is a blockchain protocol for the decentralized storage and transmission of data. Let’s imagine it to be the successor to HTTP but in a decentralized, distributed web. Filecoin has tokens for its IPFS (like units of space) and, as said, also users can get paid by tokens to donate their unused hard drive storage space or they can use tokens to buy space from other users.
* How was this ICO different to others?
- The unique feature on the Filecoin ICO was to comply with SEC securities regulations; so only accredited investors were allowed to contribute to the initial ICO. Investors outside USA might have more flexibility, which means, you have to have earn more than $200k for the last two years or prove a net asset of $1M (excluding properties). Basically, just for rich people. Take a look on the images if you want to see the steps. Unfortunately, I couldn’t go further -yet!
- Also, Filecoin is the first ICO to take place on CoinList, the ICO platform developed by Protocol Labs (also creators of Filecoin and IPFS) and AngelList that connects investors to early-stage tokens via the legal form SAFT sales.
- Filecoin is “based on Ethereum” but it’s not an ERC20 token (that’s not a unique feature, but it differs from the most). It means that is not a token standard, so it doesn’t have the functions and the events that an Ethereum token contract has to implement.
- Forced vesting in presale of at least one year to three years (not a unique feature, but it differs form the majority).
* How much did they raise from different sources?
The sale generated a record-breaking level of investor interest.
- Presale (only venture capital): $52 million. Token price: between $0,5 and $0,75.
- Main sale (accredited investors or the mentioned rich people): First hour: $186million. Starting price $1,30
- Reopen Aug 12 until today 25th August (same accredited conditions) $13million.
The ICO is still open and ends on September 7th
The starting price on the main sale was $1,30. Since the first investment, the price has been raising according to the following formula:
Token Price formula: Max($1, Amount Raised/ $40.000.000)
So, we can calculate the current price on 25th August:
Max ( $1, $200.448.856/$40.000.000) = $ 5,01 USD/FIL
Hence, the current price for the Filecoin token is $5.01
* Why was the token sale paused?
The main sale raised $186 million in confirmed transactions in the first hour of the ICO. That huge volume overwhelmed the CoinList system and caused interruptions on the service, so the Filecoin team decided to temporarily pause the ICO. The huge volume was also caused by a
* How does that compare to the current market cap with the ERC20 tokens?
Now, Filecoin would be in the 10th place list of market cap ERC20 tokens with its $200.448.856 market cap. Currently, there are a total of 5.722 ERC20 token contracts. But remember, filecoin it is not an ERC20.
* Which is the token allocation?
The token total supply is 2Billion tokens. Distributed as the following:
- Miners: 70% ( it will be distributed during the next 16 years to network nodes in form of block rewards
- Protocol Labs: 15%
- Investors: 10% ( it includes the presale and the ICO)
- Filecoin Fundation :5%
* What’s the liquidity of their tokens now?
There is no liquidity until the network goes live. Advisors have a minimum of one year vesting and in my understanding, investors in the ICO have a minimum of 6 month vesting. It is unknown when Filecoin is going to be released on an exchange, but looks like we will have to wait at least six month.
*Why did it raised this huge amount of money?
Filecoin has been the first one launching a token within the framework of US Securities Law. This gave the opportunity to the venture capitals to join to the current fever of the ICOs and, furthermore, they got a price discount for it. So, that’s sounds very attractive and so they got the $52M. Between these advisors we can find big names like Sequoia Capital or Union Square Ventures. As mentioned, all of them are vesting for at least one year to three years. This support on the presale made filecoin reliable for the investors, so I believe this fact encourage them to go for the Filecoin ICO and to get the further $200M.