As the launch of the main network for the (Pi Network) project approaches on February 20, speculation is increasing within the cryptocurrency community about the potential trajectory of the currency's price. After years of mobile mining in a test environment (Testnet), the question posed today is: Will the value of (Pi) rise after the launch, or will it collapse under the pressure of speculation and weak liquidity?
Overview of the (Pi Network) Project
The (Pi Network) project was founded with the aim of enabling ordinary users to mine digital currencies through their smartphones. It has attracted more than 35 million users who have mined (Pi) currency through a dedicated app. However, until now, the currency has not been listed on any public trading platform and has only been available within a closed environment.
Investors are preparing for sharp price fluctuations. The listing of the currency for public trading could be a historic opportunity for early users or a significant disappointment.
(https://www.ccn.com/analysis/crypto/pi-network-long-awaited-mainnet-pi-coin-surge/)
Positive Outlook (Optimistic)
Supporters believe that the currency's scarcity and the size of the user community, along with the anticipated listing on exchanges, are factors that may lead to increased demand. Many users have held (Pi) coins for years without being able to benefit financially from them, and they now hope that the listing will yield real gains, especially if trading starts at a high opening price.
The key strengths of the (Pi) project lie in its active ecosystem and large community size, which could give it a strong boost when entering the open market.
(https://www.gate.io/post/status/9175376)
Potential Challenges and Risks
However, on the other hand, pessimists warn of several factors that may negatively affect the currency's price. First, the current valuation of the currency is based on speculation and not on real market data, due to the lack of previous actual trading. Additionally, the desire of a large number of users to sell the currency immediately upon its listing may lead to a sharp price drop due to selling pressure.
Liquidity remains one of the main challenges. If market support mechanisms or sufficient incentives from trading platforms are not available, the currency may suffer from low demand, leading to stagnation or a decline in price. Furthermore, the legal and regulatory situation of the project remains unclear, which may affect listing opportunities on major exchanges.
Trading (Pi IOU) as a Preliminary Indicator
Some platforms, such as (Binance), are offering trading of tokens derived from (Pi) known as (IOUs), which are tools that track the virtual value of the currency before its actual launch. Trading data indicates sharp fluctuations ranging from $10 to $40 during certain periods. However, these values do not necessarily represent the true price at launch.
(https://www.binance.com/en/price/pi-iou)
Summary: High-risk Opportunity
The launch of the main network for (Pi) currency is a pivotal event that could yield tangible returns for early users. However, in the absence of a reliable trading history and ambiguity in the pricing mechanism, the currency remains a high-risk investment. Therefore, investors are advised to be cautious, follow official announcements from the platforms, and avoid making decisions driven solely by enthusiasm.
Whether the price of (Pi) rises or falls after the launch, the experience will provide important lessons about building digital communities and adopting mobile mining technologies.
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As always, it is important to do your own research and consider your risk tolerance before making any investment decisions. Stay informed by checking the latest prices and market trends and follow me on social media, and consider taking advantage of the current market conditions to enhance your digital currency portfolio.
Written by: Dr. Mohammed Al-Hamiri @AlhemairyM
