PI Network: Risks and Hidden Pitfalls in Listing

PI Network has attracted attention from the cryptocurrency community since launching the mining system in March 2019. However, after nearly 6 years of development, the project is facing some serious issues that could negatively impact the value of the PI token when listed on the market.

1. Token Price Movement The PI token price chart has witnessed a sharp decline, from $2.2 to only about $0.66. This indicates that investors may have sold their tokens at prices ranging from $1.5 to $2 in time to take profit, but also raises questions about the potential recovery of the PI Network in the future.

2. Total Massive Supply One of the most prominent issues is the total supply of PI, up to 100 billion tokens. The flood of tokens in the market can create serious downward price pressure when supply exceeds demand, especially without tight issuance management and regulation mechanisms. As a result, the value of the token will be diluted, reducing the benefits for long-term investors.

3. KYC Process and Distribution Restrictions Another controversial point is the PI Network's KYC process. Accordingly, the system only approves KYC for users with less than 300 PIs, and does not extend it to investors owning a large amount of tokens. This policy not only creates inequality in the migration process to the mainnet but also potentially facilitates the management group to take action in dumping tokens on the retail market. This action could increase selling pressure and push the token price even lower.

4. Prospects for the Future and Risks of Inflation With a massive total supply and a somewhat biased KYC distribution process, many analysts predict that PI Network will have difficulty in recovering its initial price level. The risk of inflation is further heightened if in the future, the PI token could “add a few 0s” to the total supply, meaning the introduction of new tokens. This could lead to a devaluation of the circulating tokens, increasing the risk for investors. Conclusion Although PI Network has been highly rated for its mobile mining concept and long-term development process, the shortcomings in token distribution mechanism and current KYC process are now significant risks to be concerned about. Investors need to be cautious and consider carefully before making investment decisions in this ecosystem. It is essential to closely monitor the updates, reevaluate the issuance policies, and assess the impact of token supply on the price in the context of the ever-changing cryptocurrency market.