The decline of the Pi Network currency is attributed to a combination of potential factors, including:
1. Lack of actual trading and market transparency:
So far, the currency has not fully entered the major exchanges, limiting liquidity and trust among investors. The ambiguity surrounding the mechanism for determining the market value of the currency may raise questions about its investment viability.
2. Employment and marketing model:
In its early days, the project relied on a model similar to network marketing to attract users, which some may view as an unsustainable mechanism, negatively affecting market expectations and investor sentiment.
3. Regulatory challenges and competition:
In light of tightening regulations around the world on digital currencies and intense competition among new projects, Pi Network may find it difficult to establish its presence in the regulatory environment and ensure compliance with legal requirements.
4. Lack of practical usage:
The valuation of any digital currency largely depends on the extent of its use in daily transactions and practical applications. If Pi Network cannot build an effective usage environment, its valuation will remain limited.
Future expectations
The future expectations of Pi Network depend on several key factors:
Technological development and practical adoption:
If the development team succeeds in providing innovative solutions and building a real ecosystem used in daily life, the currency's valuation may gradually improve.
Expanding partnerships and merging with other platforms:
Establishing strategic partnerships with reputable institutions or trading platforms can enhance trust in the project and expand the user base.
Responding to regulatory challenges:
The project's commitment to international regulatory standards and achieving greater transparency in how the currency is managed and its value is determined will play a crucial role in gaining investors' trust.
The general market and volatility:
As with most digital currencies, price volatility will remain an important factor, influenced by a mix of economic factors and general demand for digital currencies.
In conclusion, the future of Pi Network holds positive potential if the team can overcome the mentioned obstacles, but at the same time, challenges remain that could lead to continued depreciation or significant volatility in its value. Interested parties should follow developments and reliable news about the project to make informed decisions.