- Pi Network Price Under Pressure Amid KYC Grace Period Extension: What’s Next for Pi Coin?
The price of Pi Network’s native token, Pi Coin, has come under significant pressure after the developers announced an extension of the KYC (Know Your Customer) verification grace period until December 31. This decision has resulted in a near 50% drop in Pi Coin’s price, which recently retreated to $48.63, down from its peak of $91.51 in November.
Pi Network KYC Grace Period Extension
The primary catalyst for this price dip is the extension of the KYC verification process, which has become a pivotal step as Pi Network transitions from its closed mainnet to the open network. The KYC process ensures that only verified pioneers (users) are part of the network, preventing bots from accessing the system during the mainnet migration. As part of the transition, developers aim to ensure that the network becomes more secure and ready for exchanges.
The developers emphasized that the deadline for the mainnet checklist, including the KYC verification, will still occur on December 31. However, the extension of this grace period signals that the Pi token will not be available for trading this year. Consequently, traders and investors may have to wait longer before they can exchange Pi for fiat currencies or trade it on public exchanges.
Network Progress and Utility
Despite the KYC delay, Pi Network’s ecosystem has shown significant growth. The PiFest competition registered over 27,000 sellers, illustrating the increasing utility of the Pi Coin. Additionally, there are over 50 apps already mainnet-ready within the network, paving the way for a robust platform once the transition is complete.
While the KYC process is a crucial hurdle, there are promising signs for Pi Network. The regulatory environment in the U.S. is improving under the new political landscape, and cryptocurrency prices are on the rise, which developers believe will positively impact Pi Coin’s future.
Also Read: Pi Network Mainnet Explained: Mining Pi Coins, KYC Requirements, and the Future of Pi IOUs
Price Outlook for Pi Coin
On the price front, Pi Coin has been struggling to maintain its bullish momentum. After reaching $91.51 on November 23, the coin has formed a double-top pattern, signaling a potential bearish reversal. Currently trading below the 50-day Exponential Moving Average (EMA), Pi Coin faces increased pressure. If the coin drops below the green ascending trendline, it may fall further to around $37, the lowest swing recorded in October.
Alternatively, if Pi Coin manages to reverse the trend, it could see a bounce back to $65, a key resistance level reached on November 8. However, traders should proceed cautiously as the bearish pennant pattern hints at further downside risks.
In conclusion, while Pi Network is making progress in its transition to the open network, the extended KYC grace period has resulted in a volatile price action for Pi Coin. Investors and traders should stay alert to market developments, as the coin’s future price trajectory hinges on the successful completion of key milestones and broader market conditions.
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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