The Pi Network, a blockchain platform known for its bold claims and highly devoted community, is once again postponing its long-anticipated mainnet launch due to ongoing migration issues. This has raised concerns within the community regarding the project’s true intentions.
Recent statistics show that of the more than 3.85 billion migrated Pi coins, only 683 million are currently in circulation. A significant 2.63 billion Pi tokens remain locked up, a feature intended to reduce circulating supply and increase scarcity. However, this has led to questions about the network’s liquidity and the practical accessibility of its tokens for everyday transactions.
Grace Period and Migration Complications
On July 1, Pi Network announced a six-month grace period aimed at preparing for the Open Network. During this time, users, known as "pioneers," are required to complete their KYC (Know Your Customer) verification and finalize their mainnet migration.
This extension is meant to provide flexibility for users facing system blocks. However, it has also sparked speculation that the network might be using this period to encourage more users to lock up their tokens, thereby further limiting the circulating supply.
The success of this grace period is critical, as it depends on whether the network can meet its KYC and migration targets. Failure to achieve these goals could result in further delays, potentially eroding user trust. If the targets are not met, it’s possible the network will extend the grace period again, citing technical or user-related challenges, which would further delay the mainnet launch.
Another possibility is that the network could opt for a partial launch, allowing only those who have completed their migration to participate. This could lead to fragmentation and dissatisfaction within the community.
To address concerns about liquidity, the network might offer additional incentives for users to lock up their tokens. While this could temporarily stabilize the supply, it might not be a sustainable solution in the long term.
The Pi Network faces a critical test. The project must navigate these challenges successfully to maintain its credibility and deliver on its promise of creating a decentralized, widely accessible digital currency. However, the current situation, with a high number of locked tokens and persistent migration issues, indicates that there are still significant hurdles to overcome.
Pi Network Coin Price Faces Resistance
On July 14, the price of Pi coin’s IOU on HTX dropped by over 6%, settling around $40.7 after a recent spike to $49 on July 9. The price action encountered strong resistance at the top of a descending channel, indicating that the anticipation-driven surge has lost momentum.
If the uptrend were to continue, the Pi coin price would face resistance near $44 and $49. Breaking through these levels could lead to further upward movement, although current indicators suggest a bearish trend is more likely.
On the downside, a continuation of the downtrend could push Pi Network's IOU price to test the support level near $39. Should this support fail, the price could drop to $36 before any significant recovery occurs.
Additionally, the descending channel resistance suggests that the token could fall to the support line near $34, potentially leading to a 15% drop in price.
The Relative Strength Index (RSI) for Pi coin currently stands at 56.03 on the daily charts, indicating a relatively neutral stance. However, the overall chart pattern leans towards a bearish outlook.
