3 reasons why Pi Network price may crash after the mainnet launch
Pi Community builders are gearing for the highly-anticipated mainnet launch, which is anticipated to occur in March.
This mainnet launch will enable pioneers to monetize their accrued tokens and builders to showcase their apps to their target market.
The launch will occur over seven years because the builders launched the community, which allowed pioneers to mine tokens on their smartphones.
So much has not been revealed in regards to the mainnet launch, together with the date and the value. Hypothesis is that the Pi coin worth will begin buying and selling at $3.14, the worth of pi. Listed below are the three the explanation why the Pi Community worth could crash after the mainnet launch.
Pi Community worth could drop due to revenge promoting
The primary most important motive why the Pi coin worth could crash after the mainnet launch is revenge sellng. This can be a state of affairs the place pioneers who’ve been mining the token for years determine to promote all their tokens.
That’s as a result of these pioneers have endured a chronic anticipate the mainnet launch to occur. They missed the current crypto worth surges in 2021 and within the final three years.
Pi Community’s builders have additionally dissatisfied them by lacking key deadlines. For instance, they delayed the know your buyer verification or KYC from November 31 final yr to February 28.
Faucet-to-earn tokens crash after the airdrop
The opposite motive why the Pi con worth could crash after the airdrop is that many tap-to-earn tokens crash after their airdrop. Hamster Kombat (HMST) has crashed by 90% from its highest degree in September final yr.
Different tokens like DOGS and Notcoin have additionally dropped. That is notable since Pi Community is a tap-to-earn platform the place customers accumulate tokens by tapping a button on the app. The one distinction is that Pi has created its personal blockchain and its ecosystem, together with a browser and the Hearth Discussion board.
These tokens crash as many customers who’ve accrued their tokens promote and convert them into fiat currencies.
It’s not simply tap-to-earn tokens which have crashed after the airdrop. Most not too long ago airdropped tokens like Berachain, Wormhole, and zkSync have all plunged after their token launches.
As such, many Pi Community pioneers will need to promote early to keep away from the errors of most tap-to-earn holders.
Seasonality to play an element
Additional, Pi Community mainnet launch could occur within the final days of the quarter. Traditionally, the third quarter is often the second-worst interval for cryptocurrencies because it coincides with the Summer time season. CoinGlass knowledge exhibits that the common Bitcoin return in Q2 is 26%, adopted by 6% in Q2.
Due to this fact, there’s a danger that the Pi coin worth will drop if the seasonality facet works. Newly launched airdrops do nicely when there’s a crypto bull run.
