Pi Coin took a tremendous hit, losing over 20% today and below the crucial $1 mark. This latest loss is highlighting the alarming trend, with the crypto losing over 43% of its value in a week. The future of Pi Network has put the investors in worries, with transparency concerns, delayed listings, and an impending token unlock feeding the uncertainty. Here, we explain why the Pi coin is down 20% today and whether its state is likely to be worse over the next couple of days.
Delayed Exchange Listings and Investor Frustration
One major reason why Pi Coin is 20% down today is due to the persistent delays in its listing on top exchanges like Binance and Coinbase. Although rumors of a listing pushed the price up of the coin. But with time passing without any official announcement, investors lost faith.
For any token, an exchange listing is a milestone. It raises liquidity, attracts institutional money, and enables mass trading. The longer Pi Coin remains unlisted on top platforms, the poorer its price will be. Traders who had entered earlier in anticipation of listing rumors are now selling their holdings, pushing prices down even further.
Transparency Issues and Growing Skepticism
Another reason why the Pi Coin has dropped 20% today is the continued suspicion of its transparency. The team behind Pi Network has not provided a clear vision for its Open Mainnet release. In contrast to other projects that keep in touch with frequent updates, Pi Network has kept many investors on their toes.
This lack of transparency has also given rise to doubts about legitimacy of the project. Some of them have even termed it a scam. Crypto analyst Justin Bons has also accused Pi Network of being very centralized when it claims to be decentralized. He went on to add that all transactions have to be approved via Know Your Customer (KYC) verification, which is not standard for decentralized projects.
Also, Bybit CEO Ben Zhou warned that Pi Coin could be riskier than meme coins due to these transparency issues. With all the problems being shared on social media, investor trust has been hit, triggering the recent sell-off.
Problems of Insider Control and Network Stability
Many investors worry that the majority of Pi Coin’s supply is controlled by a few individuals. Justin Bons stated that insiders might be holding up to 20% of the entire supply of Pi Coins. If so, it would mean that a few people can push the market and make it riskier for normal investors.
Centralization in crypto projects usually indicates issues. Decentralization is among the fundamental principles of blockchain technology, and when a project fails to uphold it, investors lose confidence. This aspect has been among the reasons why Pi Coin lost 20% today since most traders want to close their positions before potential price manipulation.
The Five-Year Mainnet Delay and Technological Concerns
Pi Network initially promised a complete blockchain ecosystem with a decentralized manner. But five years have already passed, and the Open Mainnet is still not live. Investors who waited for years are getting impatient, and many are now questioning whether the project will ever keep its promises.
Aside from the skepticism, Justin Bons is claiming that the underlying technology in Pi Network is not innovative but plagiarized from Stellar (XLM). In case it’s true, that only devalues Pi Network’s credibility. Crypto enthusiasts are enthusiastic about groundbreaking projects, and if Pi Coin isn’t using anything groundbreaking technology-wise, then the future price may be tainted.
Token Unlock: An Investor’s Source of Worry
Among the biggest overhangs on the price of Pi Coin is the upcoming token unlock event. Soon, 129 million Pi Coins worth approximately $140 million will be unlocked into the market. When a huge number of tokens are made available, it tends to lead to a decrease in price because there is additional selling pressure.
Investors are concerned that as soon as these tokens are put out on the market, sellers will inundate the market with them and cause the price to drop even further. Some community members, designated as Pioneers, have started locking in Pi holdings because of this potential risk. Considering these fears, many traders are selling their stocks hoping for a larger decline, and it is one of the reasons why pi coins are down 20% today.
Until they solve those issues, why Pi Coin dropped 20% today will be a relevant question. If the team doesn’t do anything about it, further drops are to be expected, especially after the next token unlock event.
Conclusion
All in all, Pi Coin’s fall of 20% today results from a multifaceted mixture of reasons ranging from delays in exchange listings to transparency, control by insiders, uncertainty over mainnet releases, and an imminent token unlock.
