In the past 24 hours, the crypto community has been buzzing non-stop about FIL. On one side, people are stubbornly holding on, dreaming of buying the dip and turning things around, as if they are holding a winning lottery ticket; on the other side, panic-stricken, they are rushing to liquidate and placing orders overnight.

Having been in this circle for many years, I’ve seen the rise and fall of countless projects. The situation with FIL is not so much a sudden event as it is a long-accumulated problem erupting all at once. We need to analyze this thoroughly—though these are just personal opinions, at least after reading, you'll have a clearer understanding of this account.

Do you remember the original vision? Distributed storage was touted to revolutionize HTTP, and FIL, as the incentive layer of the IPFS protocol, once became synonymous with Web3 storage. Traditional storage solutions are costly and unstable, and the prospects of low-cost, high-security IPFS attracted a large number of followers. Even institutions like Sequoia backed it, and its market cap once soared to over ten billion dollars. Many people wanted to hop on this train.

But reality is harsh. No matter how idealistic, it cannot withstand the test of the market.

There are three core problems, each of which is a fatal flaw:

First is the overcompetition within the sector and false prosperity. Distributed storage is no longer dominated solely by FIL. Arweave, with its "pay once, store forever" model, has already formed a viable alternative in certain application scenarios.