Pi Network officially launched on February 20th and is listed on several cryptocurrency exchanges, raising hopes for many Pi miners over the past five years. The opportunity to change their lives and become USD millionaires seems closer than ever. But are there any risks?
Bet on luck.
Pi Network was launched in 2019 and began receiving significant attention in Vietnam from early 2021 due to its ability to allow users to mine Pi for free through the Pi Network app on smartphones.
After more than 5 years, at 3 PM on February 20th (Vietnam time), the Pi Network team officially launched the Pi cryptocurrency. This currency has been listed on several exchanges such as OKX, MEXC, Gate, and Bitget.
Several exchanges such as CoinW, HTX, XT, and BitKan... listed Pi cryptocurrency as an IOU, but most later delisted it due to concerns about the risk of high volatility when the currency goes public.
According to Pi Network, approximately ten million users have completed the Know Your Customer (KYC) process and uploaded their mined Pi tokens to the mainnet. However, according to the Pi Network team, in some countries and regions, it will not yet be possible to deposit and trade Pi tokens.
Immediately after its official listing on the afternoon of February 20th, Pi opened on the OKX exchange (established in 2017 in Hong Kong, China) and traded at prices ranging from $1.3 to $2. This price was quite similar to the previous black market price of Pi, which was around $2. On the Bitget exchange, Pi even reached $3.4 at one point.
This isn't a great start for those who bought Pi on the black market at high prices, but it could be a dream come true for many who have been mining Pi for free over the years. Online, some people are boasting about making profits at $1.6-$1.8 USD/Pi.
In fact, Pi is highly anticipated. Some even believe that Pi could achieve a feat similar to Bitcoin thanks to its large community of tens of millions of participants, with the potential to become a means of payment, as some stores and individuals have already experimented with accepting Pi payments through P2P (users transacting directly with each other) methods.
Accordingly, if successful and Pi Network builds a real-world ecosystem, Pi could become a useful means of payment. The project plans to create decentralized applications (DApps) and an internal marketplace to use Pi in transactions for goods and services.
Demand for Pi is also relatively high, as the cryptocurrency is quite well-known in many countries and within the global cryptocurrency community, including Vietnam. With its relatively low price and ease of purchase, many people are investing to try their luck if the price breaks through. The surge to $2-3 USD/Pi and liquidity reaching billions of USD within the first 10 hours of trading demonstrates this.
High risk
However, there are also quite a few risks associated with Pi.
First of all, Pi Network has not provided clear evidence of a true blockchain, lacking the basis to be considered a legitimate cryptocurrency. Pi has also not officially announced a listing on major exchanges such as Binance, Coinbase, or Kraken, making it difficult to attract capital and achieve high liquidity.
Typically, successful cryptocurrencies like Bitcoin and Ethereum have their own ecosystems, including smart contracts, decentralized finance (DeFi) platforms, and unique non-profit (NFT) ownership records. Pi, however, is considered to lack real-world value and clear practical applications. Some P2P (peer-to-peer) transactions involving Pi are unofficial and lack a large trading market.
Pi is also not a meme coin – a cryptocurrency with high entertainment and symbolic value, featuring famous figures like the digital currencies $TRUMP, $Melania, Dogecoin, etc. Meme coins have no intrinsic economic value but have the potential to generate high profits in a short time. Importantly, these coins attract large capital flows on leading exchanges. The supply of these coins is also not too large; for example, $TRUMP has a fixed supply of nearly 200 million meme coins. These factors support the price of these coins. Currently, $TRUMP is priced at nearly $17, with a total market capitalization of nearly $3.4 billion.
Meanwhile, Pi has a very large supply.
According to CMC, Pi Network self-reported its initial supply to be over 6.3 billion Pi and its self-reported market capitalization to be over $5.7 billion. However, the majority remains locked in users' wallets for months or even years. The total supply throughout the cryptocurrency's lifespan is estimated at 100 billion tokens.
As can be seen, the amount of Pi circulating in 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 are in circulation, with a price of $97,700/BTC as of the morning of February 21st.
Meanwhile, selling pressure from miners and black market traders appears strong, potentially causing the price of Pi to plummet. For many years, Pi has been mined completely free of charge.
Furthermore, Pi Network closely resembles multi-level marketing (MLM) models, and the project could collapse if it fails to demonstrate real value.
According to Coinmarketcap, as of 10:50 PM on February 20th, the price of Pi had fallen below $0.90 USD/Pi. By 0:30 AM on February 21st, the price of Pi was still at $0.75 USD, a decrease of 50-60% compared to its initial offering price.
Many exchanges are currently refusing to list Pi. Binance, the world's largest cryptocurrency exchange, has not yet listed it.
Previously, Binance allowed users to vote on whether or not to list the Pi Network cryptocurrency. Users were required to hold at least $5 in their Binance accounts throughout the voting period. However, the vote was only for reference and did not directly determine the listing. Binance would evaluate the project based on its own process. Until then, Pi users could stumble at the threshold of paradise 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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