Pi Network has become one of the most controversial topics in the crypto space, being compared to Bitcoin due to its simple and accessible mining model. Although the excitement surrounding this project is increasing, there are many concerns that the value of the Pi coin may drop sharply immediately after the launch of the mainnet, which the community is eagerly awaiting.
Here are the top 4 reasons that may cause the value of Pi to decline in the near future:
One of the biggest concerns about Pi Network is the multiple delays in the launch of the mainnet. Initially, the community expected this launch process to take place in 2024, but currently, the project has been postponed to the end of February 2025. Such delays not only make investors impatient but also raise doubts about the feasibility of the project in the future.
Prolonged delays can reduce investors' confidence in Pi Network's ability to execute, and once this happens, many people may start selling their tokens, reducing the value of the Pi coin, especially when there is not enough demand to absorb this supply.
Another reason that may cause a sharp drop in the value of the Pi coin is the profit-taking by early Miners. Those who participated in mining Pi in the early stages have invested time and effort without immediate returns. After many years of waiting and going through delays, many people may want to sell their tokens as soon as they can be traded on exchanges.
In this case, a large amount of Pi may flood the market, increasing the circulating supply and causing the price to drop if there is not enough demand from buyers. This is particularly worrying when Pi Network is facing strong competition from other cryptocurrency projects.
The history of many cryptocurrency projects shows that after conducting airdrop programs, the value of the token may drop sharply upon launch. A recent example is Berachain, which witnessed a 50-60% price drop immediately after the airdrop, while Hamster Kombat (HMST), Wormhole, and ZkSync also recorded similar price declines.
Pi Network may face a similar situation if the market demand is not strong enough to absorb the large amount of tokens after the mainnet launch. Although Pi has a large and strong community, maintaining the value of the token in a volatile crypto market will be a significant challenge.
The timing of the mainnet launch is also an important factor affecting the price movement of Pi. If the official launch takes place at the end of the first quarter, the history of the crypto market shows that this is not the ideal time for the explosion of new projects. Spring usually sees slower growth and less volatility than the third quarter, when markets tend to be more active.
Therefore, if there are no strong market factors to drive the value of Pi during this period, the price of Pi may struggle to maintain stability or achieve strong growth after the mainnet launch.
Although Pi Network is still an attractive project with great potential, factors such as delays in the mainnet launch, the ability of early Miners to take profits, the airdrop effect, and seasonal impacts may cause a significant drop in the value of Pi Network in the near future. Investors and participants should be prepared for these fluctuations and be cautious in their investment decisions.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any investment decisions. We are not responsible for your investment decisions.
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