Six years of hard work, Pi Network's highlight moment
At 4 pm today, Pi Network finally ushered in its highlight moment. At this moment, the eyes of global cryptocurrency investors are focused on Pi Network. However, the launch of Pi Network was not smooth sailing, and there were many controversies and challenges behind it.
The main controversies of Pi Network:
Question of pyramid scheme model: Pi Network's invitation mechanism and first-level recommendation relationship have always been questioned as a pyramid scheme model. Although the project party emphasized that this is a social network-based promotion method aimed at expanding the user base and enhancing the decentralization of the network, these controversies have affected the image and acceptance of Pi coins in the market to a certain extent.
History of mainnet delays: Pi Network's mainnet schedule can be called a "delay textbook". Since its launch in 2019, the mainnet has been delayed many times, resulting in a decline in community trust.
Valuation bubble: Based on the maximum supply of 100 billion pieces, if Pi coins reach $1, its fully diluted valuation (FDV) will be as high as $100 billion. However, only 2 billion Pi coins have been migrated to the main network, and the remaining 98 billion coins need to be gradually released through mining. If the team controls the unlocking rhythm, it may trigger a panic of selling pressure. In addition, the existing 80 DApps are mostly tool applications, lacking value capture scenarios such as DeFi and NFT, and the ecological hematopoietic ability is questionable.
Regulatory risks: Pi Network's compliance strategy hides risks. Users need to submit information such as ID cards, facial recognition, and proof of residence, which poses a risk of data leakage. In addition, if the SEC determines that Pi coins are securities, its US ecosystem may collapse instantly.
Despite the constant controversy, Pi Network's potential and prospects are still worth looking forward to. The project party needs to improve market recognition, respond to regulatory challenges, optimize the token economic model, reasonably control the token unlocking rhythm, avoid triggering market selling pressure, and enrich application scenarios to improve the ecological hematopoietic ability.
The future of Pi Network is full of uncertainty, but its huge user base and innovative mining model provide it with a solid foundation. How to find a balance in the controversy will be an important issue that the Pi Network team needs to face, and here we also hope that Pi Network will get better and better.
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