Gemini Exchange develops Wrapped Filecoin for using FIL on the Ethereum Network

Gemini Exchange develops Wrapped Filecoin for using FIL on the Ethereum Network

Gemini cryptocurrency exchange has announced the development of the Wrapped Filecoin (wFIL) service, which will allow the use of FIL tokens in the Ethereum blockchain.

The Gemini message states that holders of tokens of the Filecoin decentralized data storage platform will be able to exchange FIL tokens for wFIL and vice versa in a ratio of 1:1. The conversion will be carried out on the Gemini exchange, and the assets can be withdrawn to any Ethereum address.

All FIL tokens will be transparently stored in the Gemini custodial service for institutional investors. Users will be able to verify that the number of FILS involved on the exchange is equivalent to the total volume of WFILS in circulation.

The launch of the main Filecoin network took place on October 15. The project allows users to trade volumes for data storage using the FIL cryptocurrency. To place the data, “miners” are hired, who receive a reward for completing tasks. Four days after the launch of the network, Filecoin miners began to “strike” and turned off their devices due to a lack of tokens, considering the economic model of the project unfair.

Note that against the background of the protest of miners, the amount of resources for storing data in the Filecoin network
increased by 40%. As of today, 850 pebibytes (PiB) are available in Filecoin, and on October 19, this figure was 600 PiB. The growth in the volume of resources was also influenced by the updated mechanism for distributing rewards. On October 23, the developers activated the FIP-004 solution, thanks to which miners began to receive 25% of the block reward immediately after its creation.

Recall that in September, the Gemini exchange began to officially operate in the UK and opened deposits in British pounds, having received a license to work with electronic money (EMI) from the Financial Supervisory Authority of the United Kingdom (FCA