With the launch of Pi Network's open blockchain, experts are raising questions about potential risks based on the recent crash of the OM token.
Risks During Pi Network's Open Mainnet Launch
The launch of Pi Network's open mainnet coincides with experts' warnings about potential consequences if the network encounters forced liquidations, which could seriously impact investor confidence.
Analysis of OM Token Crash
The crash of the OM token was caused by 'reckless forced liquidations' on centralized exchanges, leading to over a 90% price decline. This has served as a warning for other cryptocurrency projects, including Pi Network.
Pi Network's Strategy and Its Impact on Stability
In contrast to OM, Pi Network's strategy is focused on decentralization, which experts hope will help avoid similar vulnerabilities. Transparency in communications will also be key to maintaining investor trust.
Lessons learned from the OM crash emphasize the importance of decentralization and transparency to maintain trust within the cryptocurrency ecosystem.
