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Filecoin (FIL) Spikes 45% As First SEC Approved ICO Nears Launch After 6 Year Wait

Summary:
Six years on from the publication of its original whitepaper, Filecoin (FIL) has launched an incentivized testnet designed to test the network in realistic conditions.Aiming to build a decentralized file storage network, Filecoin carried out a 0 million ICO in 2017 – the largest Initial Coin Offering at the time. It was also the first ICO to be launched with the approval of the Securities and Exchange Commission (SEC), under a SAFT agreement – Simple Agreement for Future Tokens.According to an official press release from June 10, Filecoin will now begin a three week incentivized test phase. Miners will be given the chance to compete for rewards totaling 4 million FIL tokens.Filecoin Incentivized Testnet BeginsFilecoin’s unique ‘proof-of-spacetime’ consensus algorithm measures mining

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Six years on from the publication of its original whitepaper, Filecoin (FIL) has launched an incentivized testnet designed to test the network in realistic conditions.

Aiming to build a decentralized file storage network, Filecoin carried out a $250 million ICO in 2017 – the largest Initial Coin Offering at the time. It was also the first ICO to be launched with the approval of the Securities and Exchange Commission (SEC), under a SAFT agreement – Simple Agreement for Future Tokens.

According to an official press release from June 10, Filecoin will now begin a three week incentivized test phase. Miners will be given the chance to compete for rewards totaling 4 million FIL tokens.

Filecoin Incentivized Testnet Begins

Filecoin’s unique ‘proof-of-spacetime’ consensus algorithm measures mining power in the form of the amount of empty hard drive space a user commits to the network. In this way, the process is similar to proof-of-stake, except storage space is pledged to the network instead of tokens. The Filecoin press release stated:

“The top 100 miners globally, as well as the top 50 miners from each continent, will earn Filecoin rewards based on how much storage they dedicate to the network combined with how much storage the network achieves during the test period.”

The incentivized testnet will be the final phase of testing before the launch of the Filecoin mainnet, which is expected this summer. It marks the beginning of the end, or the end of the beginning, for a project which was first conceptualized in 2014.

FIL Token Price Spikes 45%

Filecoin is operated by Protocol Labs and has received backing from Andreessen Horowitz, Sequoia Capital, and Union Square Ventures. Head of Operations at Filecoin, Ian Darrow, said:

“The testnet is designed to build, educate, and reward the early community of Filecoin miners who will help prepare the entire network for a healthy, decentralized, and widely distributed mainnet launch this summer.”

Filecoin’s unique SAFT agreement with the SEC allowed it to offer an IOU for future purchases to accredited investors only. For that reason, reliable price data on the token can be hard to pin down.

Filecoin (FIL) Spikes 45% As First SEC Approved ICO Nears Launch After 6 Year Wait
The IOU price of the FIL token spiked 44% in less than an hour on June 10. Source: CoinGecko

However, the latest data from CoinGecko shows that Filecoin’s IOU price spiked 44% upon the release of today’s announcement. The estimated value of FIL rose from $9.51 to $13.74 within less than an hour.

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