The long-anticipated Pi Network mainnet launch is finally happening on February 20, 2025, at 8:00 AM UTC. With millions of users eager to trade their Pi Coins for the first time, the event marks a crucial turning point for the project. However, despite the excitement, analysts warn that Pi Coin could face a steep decline after hitting the open market. Here are three major risks that could trigger a price crash.
1. Early Miners May Trigger a Sell-Off
Pi Coin has been in development for nearly seven years, and many early adopters have amassed substantial holdings. Since mining Pi required minimal effort, these pioneers might be tempted to cash out their holdings for instant profits once trading begins. If a large number of them decide to sell simultaneously, it could flood the market with Pi Coins, overwhelming buyer demand and causing a sharp price drop.
Historically, tokens with long mining phases often experience heavy sell-offs upon launch. This phenomenon was seen with airdropped cryptocurrencies like Optimism (OP) and Arbitrum (ARB), which saw their prices plummet shortly after launch due to mass profit-taking.
Also Read: Pi Network’s Open Mainnet Launch: Key Facts Every Crypto Investor Must Know
2. The Airdrop Effect: Free Tokens Lead to Dumping
Airdrop-style launches have a troubling history in the crypto space. Since Pi Coins were mined for free, many holders might treat them as “free money” and sell as soon as an exchange listing is available. Without strong buying demand, Pi Coin could follow the path of previous airdrops that saw their value collapse within days of launch.
Even if Pi Coin initially spikes due to hype, the lack of immediate utility or incentives for holding could encourage users to sell quickly, driving prices downward.
3. Lack of Real-World Utility
A crucial factor for any cryptocurrency’s long-term success is real-world adoption. While Pi Network has promised to build an ecosystem of decentralized applications (dApps), its current use cases remain limited. Without strong partnerships, integrations, or compelling reasons for businesses to accept Pi Coin, its value could struggle to sustain itself beyond speculative trading.
Conclusion: Boom or Bust?
Pi Network’s mainnet launch is a major milestone, but its true test begins once trading starts. If early adopters dump their holdings, speculative hype fades, and real-world adoption remains slow, a price crash could be imminent. Investors should remain cautious, conduct thorough research, and be prepared for high volatility in the days following Pi’s debut.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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