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Pi Network continues its sharp decline, hitting a new low. |
On the morning of October 10th, Pi Network continued its downward trend that has lasted for several weeks. The cryptocurrency hit $0.22 USD , its lowest price ever recorded since its listing. Thus, the price of 1 Pi is now less than 6,000 VND, a far cry from the hundreds of millions of Vietnamese dong that many Vietnamese people had hoped for – enough to buy a house or a car.
Broadly speaking, in the last 30 days, Pi has dropped by 33%, equivalent to one-third of its value. Compared to its peak of nearly $3 when it was first listed earlier this year, the cryptocurrency has lost 92%, or 13 times its value.
As Pi's price dropped, CoinMarketCap recorded a sharp increase in trading volume. This indicates strong selling pressure that price defenders were unable to withstand, breaking through resistance levels. Less than a month ago, the project set its all-time low. Just 20 days later, that record was broken again.
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Recent price movements of Pi Network. Image: CoinMarketCap. |
According to CoinMarketCap , Pi is currently trading around $0.23 , a slight but insignificant increase from its low point. Recently, the project's founders have been making frequent appearances, promoting the cryptocurrency's applications, but this has had no effect on the coin's price.
Last week, Bitcoin surged, setting a new record high at $125,000 . Following the market trend, ETH and BNB also recovered, reaching new highs. Pi Network was among the few coins that bucked the trend, experiencing a significant drop.
The unusual operating method of Pi Network also raises serious questions about the current supply and token allocation. The project claims to have 7.71 billion Pi in circulation. However, how much of this is unlocked, and how much is held by the team and exchanges, remains a big question mark. On the other hand, it is always under selling pressure as a large amount of cryptocurrency is mined daily, along with the amount that is "thawed" after being frozen for a period of time.
According to data from the blockchain tracking platform Piscan, there are 163 network nodes of the Pi Network blockchain platform located in Vietnam. Meanwhile, the project owns 334 processing points globally. This means that domestic users hold nearly half, equivalent to 49%, of Pi's validator nodes.
Blockchain data identifies the distribution of nodes in Vietnam with 75 machines in the North, 34 in the Central region, and 54 in the South. This number is many times greater than other regions with a high concentration of Pi miners such as China, India, South Korea, or Europe.
Besides the tracking node, the validator is a crucial component in determining whether a transaction is approved. Currently, Pi Network only has two such units globally. However, they are under the management of the project development team, giving them 100% control. Therefore, the decentralized nature of the blockchain platform is questionable.
The geographical concentration of monitoring nodes raises concerns about fairness. Users in one country have significant control over the operation of the entire network.
Source: https://znews.vn/mac-bitcoin-tang-pi-network-lai-vua-co-day-moi-post1592576.html
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