Investors call for 'burning' Pi Network

Burning Pi is seen as a short-term solution to save the cryptocurrency from falling. Photo: Created by AI .

After a week of volatility, Pi Network lost more than 20% of its value. In response, analysts have come up with several proposals to prevent the cryptocurrency from falling further. DrAltcoin, a supporter of the project, said that the team could boost the price by burning a large amount of Pi Coin.

As the cryptocurrency price threatens to fall below $0.40 , DrAltcoin has come up with solutions to stem the decline. According to analysis on the X platform, he believes that a strong correction will make it difficult for Pi to recover.

To prevent the price from falling further, the investor called on the PiCoreTeam to burn the billions of Pi they hold. He stressed that burning the cryptocurrency would reduce the circulating supply, making it more scarce and stimulating price increases.

Recent price movements of Pi coin. Photo: CoinMarketCap.

“A quick fix? PiCoreTeam should burn billions of Pi Coins that are in over 20,000 Pi Foundation wallets,” the analyst said. From the start, the development team controlled over 80 billion Pi distributed in various wallets. Coin burning could help improve the price. However, pessimism among investors has increased after the recent token unlock, causing Pi’s price to fall below $1 .

De-coining may have an immediate positive impact, but the project’s long-term prospects are uncertain. “Be patient and hope Pi becomes Bitcoin, rather than ending up like XRP,” DrAltcoin wrote on X.

In fact, coin/token destruction is a very common practice in the cryptocurrency industry. This helps reduce the circulating supply, increasing scarcity, leading to price increases. ETH has a wallet address for investors to send coins to “burn”. The amount of cryptocurrency removed from circulation is also an indicator used by investors for price predictions.

Millions more Pi are unlocked every day. Photo: Piscan.

However, in the case of Pi Network, the problem is much more complicated. The 80 billion Pi held by the developer is not counted in the capitalization by specialized sites such as CoinMarketCap or CoinGecko. Currently, these platforms only record 6.86 billion Pi in circulation, which has been mined by investors. The 80 billion PiCoreTeam holds has no plans to unlock in the short term, creating no pressure to dilute the capitalization.

In fact, only a small fraction of the 6.68 billion coins mined are available for trading. According to Piscan, about 6-8 million Pi are unlocked every day. This is the number that miners actively froze in the past to speed up mining. It is this amount of coins that creates selling pressure, causing the price of Pi to continuously decrease. With the form of free mining by simply checking in, Pi owners are willing to sell their goods without the pressure of losing capital.

Pi was trading around $0.75 per coin on April 14, nearly doubling from its low of $0.40 last week. However, it has split 3 from its peak of $2.90 in late February.

Source: https://znews.vn/nha-dau-tu-keu-goi-dot-bot-pi-network-post1545753.html