The Pi Network, often compared to Bitcoin, raises concerns about a potential price drop following the mainnet launch. We explore factors that could impact Pi Coin's value.
Delays in Mainnet Launch
One of the primary concerns among Pi Network investors is the repeated delays in launching its mainnet. Initially, the mainnet launch and KYC process were expected in 2024 but have now been pushed to January 2025. These delays have frustrated investors, leading to a 50% drop in Pi's price since November. Further delays could prompt more selling, exerting additional market pressure.
Profit-Taking Could Lead to a Sell-Off
There is a significant risk that Pi Coin's price may drop due to profit-taking. Many early miners have waited years to sell their coins. Having missed the 2021 crypto bull run and faced multiple delays, they may cash out once the tokens become tradable. This may flood the market and drive the price down, especially if demand fails to match the new supply.
Impact of Airdrop and Seasonality
History shows that many tap-to-earn and airdrop-based cryptocurrencies see significant declines in price post-launch. Recent examples include Berachain, Hamster Kombat (HMST), Wormhole, and ZkSync. Pi could follow this pattern if the market isn't in a strong uptrend. Seasonal factors also play a role: launches at the end of Q1 often struggle with the market's summer slowdown.
Regardless of Pi Network's future successes or failures, several factors could contribute to a price decline post-mainnet launch. Investors would do well to assess these risks and monitor developments closely.
