It’s helpful to connect the dots when they’re obvious. Investors are now given the opportunity to sign up for a platform which then will allow them to request approval to make an investment into Filecoin, an upcoming Storj rival from Protocol Labs, the folks behind the truly revolutionary InterPlanetary File System.
So if we’re looking for an explanation as to the 24-hour doubling of Storj, we need look no further. People who haven’t got time for all that decided to bet on Storj instead. On the other side of it, Siacoin, a slightly different approach to decentralized cloud storage, dropped a couple points overnight.
For all the interesting things about Filecoin, Storj has always allowed its entire community to take part. Storj Labs themselves focus on the sale of the product, and recently made a partnership with popular open source FTP program Filezilla.
Recently, Storj price was depressed for awhile, and a close observer might note that a shake-up in the company’s team was probably a leading contributor – much of the plunging prices could be accounted for via exiting employees. Ryan Foran and Gordon Hall left Storj Labs almost directly following their last May crowdfunding token sale (the one where they switched to Ethereum blockchain) to form ORC – a “distributed anonymous cloud” which will focus on TOR users and privacy.
This overhanging chaos seems to have played havoc on the price for awhile, but within the past week or two things have been recovering from a low of about 28 cents a token to a current price testing 80 cents. Its last peak was around 93 cents per token. This can’t be attributed solely to Storj’s performance – it’s perfectly reasonable to assume that the top-level buzz generated by Filecoin and their Sand Hill backers has translated into tertiary interest in Storj and other competing plays.
Filecoin may have some technical bells and whistles that Storj does not currently offer, but ultimately there is good reason to be suspicious of Filecoin as a decentralized or community project in the first. The demands for “accredited” investors and the like make it ripe for a quick sale to a larger outfit – perhaps a long-term play by Protocol Labs to give themselves, even more, runway to pursue their larger goal of a fully decentralized Internet. So while the research and development that go into Filecoin will long term be incredibly important, people are sharding all day on Storj at present. The thing works, there’s a low barrier to investment and participation.
Thus, price rise. But will it sustain? Hard to say. Assuming the incoming funds are brand new, we can see an average of buy-in emerging which might give us some more confidence in the next few quarters. Barring anymore drama from Storj HQ, it would seem the firm has found its way back to the steady incline, and need only focus on improving the product (specifically, becoming willing to adapt or pivot if the innovations introduced by Filecoin and others threaten obsolescence).
Yet, from this particular myopic view, things are looking good for Storj. Dollar parity? Yeah.
Disclaimer: the author is an active Storj holder and participant.
Featured image from Shutterstock.
Last modified: June 11, 2020 10:09 AM UTC