- The much-awaited Pi Network mainnet launch will provide pioneers access to liquidity for their mined tokens and enable developers to build applications within the ecosystem.
- The launch date for Pi Coin remains undisclosed as historical trends for tap-to-earn tokens show sharp post-launch price declines, and Pi Coin could face similar challenges.
Pi Network developers are all set to unleash the much-awaited mainnet, scheduled to happen in March. The mainnet launch will grant pioneers access to liquidity for the mined tokens, and it will give developers room to introduce applications within the system. The network, launched over seven years ago, has made it possible for users to mine tokens directly from their smartphones.
Despite the hype, many critical details about the launch, including the date and the price of Pi Coin at the time of the launch, remain unknown. There are some market speculations that Pi Coin might launch at $3.14, which is a nod to the mathematical constant pi. However, there are emerging concerns about selling pressure that might cause a drastic price drop once the mainnet is launched, as mentioned previously in our story.
Massive Pi Coin Sell-Off by Pioneers
One key factor that might cause a post-launch price drop is mass token liquidation by early adopters. Many pioneers of the Pi Network have been mining tokens for years, building up holdings without any chance to trade them in open markets. The long wait has been frustrating, especially as they missed several bullish cycles in the broader crypto industry.
More specifically, frustration grew as several significant processes like KYC verification dragged on in the process, as mentioned in our previous article. Initially slated for November 31, KYC verification is now pushed up to February 28. In fact, rumors are already floating that most of the users would sell the token immediately when launched. The potential selling by most of the pioneers at one go may force down the prices
Pi Network Airdrop Sell-Off Trend in Tap-to-Earn Tokens
Historically, newly launched tap-to-earn tokens have seen sharp declines after going live. Several similar projects, such as Hamster Kombat (HMST), have seen price drops of over 90% following their initial listing. Other tokens, including DOGS and Notcoin, also saw significant declines after respective launches.
Pi Network operates on a tap-to-earn model and could face the same challenges, though it has its own blockchain and ecosystem with its own dedicated browser and Fireside Forum. The pattern observed in past token launches suggests that users tend to sell large amounts of accumulated holdings immediately after gaining market access. This sudden selling pressure has led to price collapses in many previous cases, making it a possible scenario for Pi Coin as well.
Market Seasonality & Timing Risks
The timing of the Pi Network mainnet launch could further add to potential price volatility. A rollout toward the end of the first quarter or the beginning of the second might influence price action, according to historical market trends.
The crypto market performs seasonally; some periods tend to be known for weaker returns. According to CoinGlass data, the average return for Bitcoin in the second quarter is typically modest at 6%, against 26% in the first quarter. This means that if the overall market sentiment does not pick up during the launch period, it’ll be a challenge for Pi Coin to achieve upward momentum.
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