#ETHOnTheRise Everything you need to know about Pi Network to profit from mining digital currencies via phone.. and Pi coin price expectations
December 2, 2024
Pi Network is facing new challenges that are significantly impacting the price of Pi, after the decision to extend the KYC verification period until the end of next December. This decision has led to a 50% drop in the price from its high in November. This has raised investors’ concerns and anticipation of what might happen as the mainnet launch approaches.
What impact will this decision have on the Pi coin’s trajectory? Is there a chance for it to recover its value with new developments? Click here for advertising services or press releases for the crypto project
Extended Identity Verification Period Pressures Pi Price
The main reason behind the Pi price drop is the developers’ decision to extend the identity verification period until December 31. Giving more participants another chance helps to exclude bots from the open mainnet migration process.
Identity verification is one of the three essential steps required to achieve this transition, and the other two have largely been met.
One of the conditions is that the Pi Network ecosystem must be active, a strong and active ecosystem that contributes to the effective use of the currency. This contributes to the increased use of the currency.
This means that the network must include many applications and services that users can benefit from using Pi, such as buying and selling operations and other transactions.
The latest PiFest competition saw over 27,000 sellers register within the network, a move aimed at boosting the utility of Pi.
There are also over 50 mainnet ready applications, and data indicates that the number continues to grow as the mainnet launch date approaches.
An active ecosystem increases the utility of the currency and enhances its value, as it reflects the presence of great interaction between users and developers in the network. This makes the currency more attractive for trading and practical use. This is necessary before moving to the open mainnet and starting actual trading of the currency.
Pi Network is a cryptocurrency project that aims to make cryptocurrency mining easier via smartphones. This makes it accessible to a wider user base. The network was developed by a team of Stanford University graduates, and the first phase of the project was launched in 2019, helping to build a strong community of participants ahead of the full launch of the mainnet.
Pi Coin is currently not tradable due to it still being in the closed mainnet phase. This means that all activities related to the coin remain confined within its ecosystem.
At this stage, users cannot sell their coins or convert them to traditional currencies such as dollars or euros. The goal of this stage is to ensure that all users have completed identity verification (KYC) and that the network is ready to move to the open stage.
The price of Pi is currently rising and falling due to the trading of futures contracts (IOUs) for the coin on some platforms. In other words, the price of the coin reflects investors’ expectations and speculations about its future value, not the actual price of the coin traded in the open markets.
These futures contracts (IOUs) are often used to represent the potential value of Pi before users can actually trade it. The price is determined by supply and demand in the over-the-counter markets for these contracts. Investors anticipate a rise or fall based on developments and news related to the Pi project, such as the progress of identity verification stages or the approaching launch of the open network.
Therefore, even if the currency itself is not available for actual trading, these contracts give an indication of the general sentiment of investors and expectations about the future of the currency and its value.
Will major exchanges list Pi after the open network launch?
As interest in the Pi Network project continues to grow, the question arises as to whether major cryptocurrency exchanges are prepared to list the coin. Some believe that the size and popularity the project has gained will make it difficult for exchanges like Binance and OKX to ignore it. If that happens, Pi’s price could see strong support and relative stability in the market.
As of now, details regarding the launch price or the exchanges that will list the coin have not been announced.
Historical data suggests that coins that rely on “earning” models usually experience a decline in value after launch, as many participants may sell the coin they have held for a long time.
The most famous and recent examples of this are what happened with Hamster Kombat and Notcoin, which saw a sharp drop in their prices after their free distribution.
Similarly, the prices of “earn-to-play” coins like Axie Infinity and Gala Games have fallen sharply after hitting their all-time highs.
Therefore, if history repeats itself, there is a high chance that the Pi price will face a sharp drop after the mainnet launch in December.
These expectations are worrying among investors, but they remain part of the volatile nature of digital markets, where future performance depends largely on market developments and project performance after launch.
Pi Network faces major challenges that affect the price of its cryptocurrency, especially after extending the identity verification period. Despite the hopes pinned on the launch of the mainnet, history suggests that the price of the coin may decline after the launch. The most important question remains: Will major exchanges list Pi? And if so, will its price stabilize or will it repeat the scenarios of previous cryptocurrencies?
