1.The overall market economy is not good. Just taking our country as an example: the prices paid by consumers and producers are falling, which exacerbates the danger of deflation. Retail sales of consumer goods and industrial production in July were both lower than economists’ expectation, and real estate investment fell sharply. As a result, the stock market has lost its vitality. The index of Hang Seng China Enterprise, which reflects the overall performance of Chinese mainland companies listed in Hong Kong, has fallen more than 9 percent this month. The Hang Seng Index, which reflects the performance of the Hong Kong stock market, has fallen by a similar amount. Among the companies included in the Hang Seng Index, the biggest drop was that of Country Garden, a troubled Chinese real estate company, whose market value has fallen by about 50% this month. The CSI 300 index, made up of the 300 largest companies most represented in the stock market in Shanghai and Shenzhen, has fallen by about 5%. China’s central bank, the People’s Bank of China, has cut key interest rates to new lows. Data released on Wednesday were even more depressing: Property prices in 49 of the country’s 70 large and medium-sized cities have fallen. The youth unemployment rate, recently announced at 21.3 Globally. And the United Nations pointed out in its “World Economic Situation and Prospects 2023” report that the outlook for the world economy is bleak and uncertain due to the confluence of multiple crises. In 2023, the global economic growth rate is expected to be 1.9%, which is one of the lowest growth rates in decades. In such an overall environment, it is impossible for Filecoin to be safe and sound.

2. The subsequent impact of the epidemic. The occurrence of the epidemic will inevitably have a greater impact on the global economic and social development, especially the comprehensive impact brought about in the short term. Recently, the COVID-19 epidemic has been rapidly extended overseas, which has brought certain pressure on the growth of global economy and trade. First of all, the occurrence of the epidemic and its prevention and control will inevitably bring about limited mobility, which will also have an impact on employment growth, consumption growth, foreign investment consultation expectations, etc., and bring about a downward trend in short-term economic growth expectations. Secondly, the short-term epidemic prevention and control measures of some countries will affect the free flow of production. Affected by the epidemic, the flow of global personnel, goods, technology and other factors will slow down, and service industries such as transportation, food and tourism will be affected. Downside expectations such as fluctuations in international trade and supply chains will increase. Thirdly, the development of the global epidemic will also affect the supply and demand relationship of the international commodity market in the short term. Price fluctuations and the impact of global capital markets, futures markets, financial markets, the global economy is facing the risk of recession. However, on the whole, the impact of the epidemic will not affect the basic direction and trend of the world economy and globalization.

3. The international environment is still at war. Since April, financial markets have raised their expectations for monetary policy tightening, but they still expect the tightening to be smaller than that made by policymakers. This increases the risk of adverse inflation data triggering a sudden rise in interest rate expectations and a fall in asset prices, and could further tighten financial conditions, putting pressure on banks and non-bank financial institutions whose balance sheets are highly exposed to interest rate risk. Secondly, debt woes are likely to intensify. While global financial conditions have generally eased since the U.S. banking crisis erupted in March 2023, borrowing costs for emerging market and developing economies remain high, which reduced their fiscal space for spending priorities and increased the risk of debt distress. In addition, given geopolitical tensions such as the Ukraine crisis, fragmentation of the global economy remains another major risk, especially for developing economies. This could lead to more restrictions on trade, particularly in the cross-border movement of critical minerals, capital, technology and workers. At the same time, it may also increase the volatility of commodity prices and hinder multilateral cooperation among countries.

4. The supply and demand relationship of Filecoin (FIL) is under pressure again. With the current price and production of Filecoin, service providers will certainly not continue to package CC sectors, which leads to a large number of service providers leaving after the expiration of CC sectors. At present, with this price and output, the service provider of the DC sector profit very low as well. Even if there is a 10 times multiplier, the new computing power sometimes can not offset the withdrawal of CC computing power. For example, on August 17, the CC sector reduced 59PB computing power, but the DC sector only increased 45PB computing power. This creates a problem: the amount of FIL released at maturity may be greater than the amount of new pledges, resulting in an increase in FIL selling pressure.

5. The current progress of Filecoin’s virtual machine and retrieval market is a little bit slow.