Risks of Pi Coin Collapse After Mainnet Launch

The launch of the Mainnet is a significant milestone for any cryptocurrency project. However, based on historical experience from airdrop projects, when tokens are distributed for free, the trend of immediate selling when official trading begins often occurs. This is also a major concern for Pi Coin.

1. Early Profit Taking by Miners One of the significant risks comes from the group of early miners - those who have been accumulating Pi Coin for over 5 years. Accumulated profits: After a long period of investment and accumulation, this will be their first opportunity to execute trades and take profits. Panic selling psychology: With the desire to lock in profits when the price spikes due to excitement and initial speculation, miners may early on sell a portion or all of their Pi Coins. Market impact: When there is a large volume of selling, this may create strong downward price pressure, leading to a chain reaction of selling from other investors and ultimately causing the value of Pi Coin to collapse shortly after the Mainnet launch.
2. Lack of Practical Applications and Underdeveloped Ecosystem Another factor contributing to the increased risk of Pi Coin collapse is the lack of practical applications in the ecosystem: Limited P2P transactions: Currently, in addition to basic P2P transactions, there are not many applications or practical services built around Pi Coin. Limited dApps quantity: Although some dApp projects have been developed, they have not yet reached the scale and popularity necessary to drive widespread usage. Lack of strategic partners: If the ecosystem does not quickly expand by establishing strategic partnerships with other businesses or technology projects, the actual utility value of Pi Coin will not be affirmed, leading to a loss of trust from the investor community. Conclusion The value of a cryptocurrency project is usually only officially assessed after it is listed and traded on the open market. Prior to that, despite having a lot of potential and groundbreaking ideas, risks from early investor profit-taking and a lack of practical applications can push the price of Pi Coin down, even to collapse. Therefore, investors should always be cautious, thoroughly research and evaluate all aspects of the project before deciding to invest, avoiding being caught up in speculation without seeing the underlying risks.