Based on the previous question about pi, here are my views o | ObaAgon on Binance Square

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Based on the previous question about pi, here are my views on the on-chain pi and exchange pi prices:
I believe that the fluctuations in pi prices will come from the competition among the five major exchanges supplying pi.
We need to first see if banza is truly collaborating with any exchange, or if they are collaborating with all of them.
Thus, the biggest beneficiary is the pi suppliers (suspected exchanges rather than PCT).
Assuming the supply comes from the exchanges, they will continuously buy pi sold by retail investors on their own exchanges, and retail investors will use the exchange price as a basis for assessing price trends.
Therefore, as long as they deceive more investors on the exchange into selling pi at a low price and then supply it to banza at a high price of 0.45 to sell coins, this is completely making a profit from price differences.
Thus, the more retail investors voluntarily sell pi on the exchange, the more they are voluntarily incurring losses and willingly helping the exchange make money.
Why are retail investors so benevolent?
#PI  

ObaAgon

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To the vast number of pi users, I have a question for you:
What do you think about the following views?

1. The function of purchasing pi within the pi wallet can only be done using fiat currency via card payments, while banza can be said to be merely a platform that assists in selling pi and helps investors from one hundred countries use their local currencies to exchange for pi.

2. Therefore, when investors receive pi sold on consignment,
banza receives fiat currency from a hundred countries, assists in converting it to USD, and then returns the USD to the supplier providing pi.

3. Thus, it can be understood that the pi wallet generates its own on-chain price based on independent on-chain liquidity, which is unrelated to exchange prices.

4. Therefore, the pi wallet only has a purchasing function from the independent on-chain liquidity pool, which consists only of fiat currency/pi. There is only a buying function, with no selling function. Hence, it is apparent that the price fluctuations of pi come from foreign exchange. For instance, pi/USD, pi/EUR, pi/RMB, pi/JPY, pi/AUD.

It can be seen that all foreign exchange is based on USD as the settlement benchmark, hence, it is understood that since the wallet only has a purchasing function, the only way to cause a decline in the on-chain price of pi is through fluctuations in a basket of foreign exchange. However, the fluctuations in foreign exchange are very small, so the decline will also be minimal.

Conversely, it seems that pi's liquidity suppliers come from the exchange supply, but the exchange only supplies pi, which is unrelated to the price of pi within the exchange. Therefore, two prices will arise here: one is the on-chain price, and the other is the price of pi on the centralized exchange itself.

5. From the above, it can be understood that when all the pi on-chain is bought out and liquidity decreases, the constant liquidity multiplier formula will automatically balance the dual currency prices, resulting in an increase in the on-chain price of pi.

*Here comes the question: How do you view the situation where the on-chain price of pi could differ significantly from the exchange price?

Because exchange prices can be manipulated, but the on-chain price of pi is based on a basket of fiat currencies and there is no on-chain function to sell pi for fiat. There is also no pi/usdt pool on-chain. Therefore, the on-chain price of pi is unlikely to decrease.

Have you ever considered a scenario where the on-chain price of pi is 0.45, while the exchange price is manipulated down to 0.1?

What are your thoughts on this matter?
#pi

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