Pi Network Incentivizes Users For “Locking Up” Tokens. Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— Pi Network might be getting serious about the launch of its open mainnet (finally). The team behind the mobile-based crypto-mining project has released a new ‘Lockup‘ feature for its users.
However, the new feature might have some hidden implications.
Pi Network’s New Feature: A Strategic Move or a Clever Trap?
The Pi Network’s Lockup feature promises higher mining rates for users who lock their Mainnet migrated Pi in their Pi Wallets. This move is marketed as a way to support a healthy ecosystem and incentivize long-term engagement. But is it really as beneficial as it sounds?
The Lockup feature is immediately binding, meaning once users lock their Pi, it’s inaccessible until the set duration ends. While this might seem like a way to stabilize the network, it conveniently serves another purpose: limiting the number of tokens available for sale when the Mainnet launches.
Pi Network advised users to lock their tokens for better rewards.
By enticing users with higher mining rates, the Pi Network ensures that users lock away a significant portion of Pi tokens, making it difficult for holders to sell their tokens quickly.
The strategy allows Pi Network to control the token supply and maintain its value, potentially preventing a market crash.. The potential for a massive sell-off might have been a key reason behind the multiple Mainnet launch delays.
However, it also raises questions about the network’s transparency and the true benefits for its users. Are the higher mining rates worth the trade-off of locking up users’ tokens, especially in a volatile and uncertain market?
While the Lockup feature might theoretically support a smooth ecosystem, it’s essential to consider whether this move is genuinely in the best interest of the community or if it’s a clever tactic to manage supply and demand dynamics to the network’s advantage.
PI Coin IOU Price Spikes
Out of nowhere, PI coin’s IOU price on HTX suddenly spiked 16% on July 9 to reach a daily high near $37.7 before paring some of the gains. It seems that the slight glimmer of an open mainnet launch has PI coin traders storming at the gates.
PIUSD daily price chart with RSI. Source: Tradingview
In the unlikely event of the uptrend continuing, PI coin price rally would face resistance near $39 and $43
On the other hand, a downtrend could force the Pi Network token’s IOU price to test the support level near $34. Moreover, breaching the immediate support could see PI coin price drop to the support near $31 before recovering.
The RSI for PI coin remained neutral, with a score of 48.84 on the daily charts.
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