🔍 Pi Currency Under the Microscope: Does Rewardless Staking Lead Its Price to Zero?
Introduction:
In the highly volatile crypto market, Pi Network (PI) returns to stir controversy again after a controversial announcement regarding a new rewardless staking mechanism. The decision sparked a wave of frustration in the community and shook confidence in the project that has long promised 'mining democracy.' Could this lead to the currency collapsing to zero?
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💡 What is Pi Network in brief?
An ambitious project aiming to make cryptocurrency mining accessible via smartphones, without the need for expensive devices or energy. It relies on building a massive community of users through referrals, but has not yet launched on the Open Mainnet, making its currency non-tradable on major markets.
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⚠️ The new staking mechanism: Support without compensation
Pi Core launched a staking mechanism known as Ecosystem Directory Staking, where users are required to lock their coins to support applications within the Pi system... but without any financial rewards.
Instead of a return, the user only receives a refund of the locked currency later, with a deduction of transaction fees. This decision sparked a wave of discontent, as some viewed it as an attempt to exploit the community without providing real value in return.
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📉 Immediate Impact on Price
After the announcement, the PI currency fell by -19.2% over the week, from $0.66 to $0.4750.
The decline reflects market disappointment and weakened confidence, especially under additional pressures from continuous unlocking of daily tokens increasing supply, against a clear absence of demand or actual use.
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❓ Does the price drop to zero?
Here’s what to consider:
No current intrinsic value: There is no wide practical use for the Pi currency yet.
Unattractive staking model: Weakens the incentive to hold the currency.
Doubts about the economic model: Some compare it to multi-level marketing, raising concerns.
Having a supportive community: It may prevent a rapid collapse, but it does not guarantee long-term resilience.
In summary? The possibility of a price collapse exists, especially if the current strategy doesn’t change and a real economy based on clear utility isn’t built.
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📊 Short-term Technical Forecast
Nearby support at $0.4750, any break below could push the price towards $0.40.
Possible recovery towards $0.57 if positive momentum returns, but that is currently unlikely without substantial news.
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✅ Analytical Summary
Pi currency is at a critical turning point.
The controversial decision regarding the rewardless staking mechanism exposed weaknesses in the incentive model and raised old questions about the true value of the project. If the Open Mainnet is not launched soon and real uses for the currency are not provided, Pi's journey in the market may end faster than it began.
📌 Advice for Investors: Proceed with caution, as projects that do not offer tangible benefits to users rarely survive in a merciless market.