Filecoin hits mining crisis as FIL/USD tanks to $30

The price collapsed to $30, down from roughly $40 to $45 over the weekend. FIL/USD has shed nearly 25% in the past 24 hours and trades just above the $31 mark. Technical indicators point downward—the MACD and RSI suggest selling pressure dominates the market. Holding the $30 level matters; any break below that opens further drops.

The crash coincided with what miners call a strike. The top five mining operations on Filecoin switched off their machines en masse, citing an unfair economic model. Miners face a catch-22: they need FIL tokens as collateral to start mining, but can't accumulate enough without mining first. The protocol distributes rewards over six months, leaving new operators without sufficient collateral to launch operations.

Zhihu Cloud operated 276 machines before powering down 7,700 of its 8,000 IPFS nodes over the weekend. The miners won't buy tokens at current prices, viewing the market as massively overvalued. Purchasing collateral while token prices stay elevated simply doesn't pencil out.

The collateral requirement creates a structural barrier. According to reports from 8btc.com, the current mining structure may lock out up to 80% of potential miners. If Filecoin developers release 25% of block rewards to miners immediately upon processing a block, that move could ease the crisis. Without changes, FIL holders should prepare for the token to fall below Friday's opening prices.