Pi Network officially launched on February 20 and was “listed” on a number of cryptocurrency exchanges, thereby bringing hope to many people who have been mining Pi for the past 5 years. The opportunity to change their lives and become a USD millionaire seems closer than ever. So are there any risks?
Bet on luck
Pi Network was born in 2019 and began to receive a lot of attention in Vietnam from the beginning of 2021 because it allows people to mine Pi for free through the Pi Network application on smartphones.
After more than 5 years, at 3:00 p.m. on February 20 (Vietnam time), the Pi Network team officially opened the Pi coin network. This coin has been listed on a number of electronic exchanges such as OKX, MEXC, Gate and Bitget.
Some exchanges such as CoinW, HTX, XT or BitKan... listed Pi virtual currency in the form of a debit (IOU), but then most of them canceled it due to concerns about the risk of strong fluctuations when this currency opened its network.
According to Pi Network, about tens of millions of users have completed the identity verification (KYC) process and brought their mined Pi coins to the mainnet. However, according to the Pi Network team, in some countries and regions, it will not be possible to deposit and trade Pi coins.
Immediately after being officially “listed” on the afternoon of February 20, Pi opened on the OKX exchange (founded in 2017 in Hong Kong, China) and was traded at a price of 1.3 to 2 USD. This price is quite similar to the previous black market price of Pi, which was around 2 USD. On the Bitget exchange, Pi sometimes reached 3.4 USD.
This is not a good start for those who have bought Pi on the black market at high prices, but it can be "like a dream" for many people who have mined Pi for free in recent years. Online, some people boast of closing profits at 1.6-1.8 USD/Pi.
In fact, Pi is highly anticipated. Some people even believe that Pi can achieve the same feat as Bitcoin thanks to its large community of tens of millions of participants, and has the potential to become a means of payment when some stores and individuals have tested accepting Pi payments in the form of P2P (users transacting directly with each other).
Accordingly, if successful and Pi Network builds a real ecosystem, Pi can become a useful means of payment. The project plans to create decentralized applications (DApps) and internal markets to use Pi in trading goods and services.
The demand for Pi is also quite large as this currency is widely known in many countries and in the cryptocurrency community around the world, including Vietnam. With a fairly low price and easy to buy, many people put money into betting on their luck if the price breaks out. The climb to 2-3 USD/Pi and liquidity reaching billions of USD in the first 10 hours of trading has shown this.
Big risk
However, there are also many risks with Pi coin.
First of all, Pi Network has not provided clear evidence of a real blockchain, lacking the basis to be considered a true cryptocurrency. Pi also has not officially announced its listing on major exchanges such as Binance, Coinbase or Kraken, thereby making it difficult to attract cash flow and have high liquidity.
Normally, to be successful, a digital currency like Bitcoin or Ethereum needs its own ecosystem including smart contracts, DeFi decentralized finance platforms, or unique NFT ownership confirmation records... Meanwhile, Pi is considered to have no real value and clear practical applications. Some Pi transactions with each other in the form of P2P are not official and do not have a large trading market.
Pi is also not a meme coin - a highly entertaining and iconic cryptocurrency, from famous figures such as digital currency $TRUMP, $Melania, Dogecoin... Meme coins have no intrinsic economic value but have the potential to generate high profits in a short time. Importantly, these coins attract large cash flows on leading exchanges. The supply of these coins is also not too large, such as $TRUMP with a fixed of nearly 200 million meme coins issued. These are factors supporting the price of these coins. Currently, $TRUMP is priced at nearly 17 USD, with a total capitalization of nearly 3.4 billion USD.
Meanwhile, Pi has a very large supply.
According to CMC, Pi Network's self-reported initial supply is over 6.3 billion Pi and its self-reported market cap is over $5.7 billion. However, the majority remains locked in user wallets for months or even years. The total supply over the cryptocurrency's lifetime is up to 100 billion tokens.
It can be seen that the number of Pi coins circulating on the market is currently very large compared to the maximum supply of 21 million Bitcoins or 200 million coins of $TRUMP. More than 19.9 million Bitcoins have been mined and circulated, with the price as of early morning on February 21 being 97,700 USD/BTC.
Meanwhile, selling pressure from miners and black market traders appears to be strong, which could send the price of Pi plummeting. For years, Pi has been mined for free.
Besides, Pi Network is quite similar to multi-level marketing (MLM) models and the project may collapse if it cannot prove the real value created.
On Coinmarketcap, as of 10:50 p.m. on February 20, the price of Pi had fallen below the threshold of 0.9 USD/Pi. By 0:30 a.m. on February 21, the price of Pi was 0.75 USD, down 50-60% compared to the time of listing.
Currently, many exchanges refuse to list Pi. The world's largest electronic exchange Binance has not listed this coin yet.
Previously, Binance let users vote on whether to list the Pi Network cryptocurrency or not. Accordingly, users must hold at least $5 in assets in their Binance account during the voting period. However, the vote is for reference only and does not directly decide on listing. Binance will evaluate the project based on its process. From now until then, 'Pi players' can fall at the threshold of heaven at any time.
Source: https://vietnamnet.vn/dong-pi-niem-yet-cho-doi-doi-nhu-bitcoin-noi-lo-sup-do-bat-cu-luc-nao-2373498.html
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