3 Critical Risks That Could Crash Pi Network’s Price Post Mainnet Launch

Pi Network is preparing for the mainnet launch, but risks like sell-offs and technical issues could impact its post-launch price trajectory
By Coingape Staff
3 Critical Risks That Could Crash Pi Network’s Price Post Mainnet Launch

Highlights

  • Technical weakness may signal a further downturn in Pi's price movement.
  • Early miners selling could flood the market and drive prices down.
  • Airdrop-based tokens often experience sharp declines after initial launches.

Pi Network is preparing for its much-anticipated Open Mainnet launch today on 20th February 2025. This significant event has captured the attention of the crypto community, especially with major exchanges revealing plans to list Pi Coin. The launch will mark Pi’s transition from a closed ecosystem to a fully decentralized network. The achievement of external wallet transfers together with exchange listings and decentralized applications (dApps) develops intense interest around Pi Coin price expectations. However, there are critical risks that could impact its price post-launch.

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3 Major Risks That Could Tank Pi Network’s Price After Mainnet Launch

The cryptocurrency world talks intensely about Pi Network as speculations rise about its upcoming mainnet launch date. The approaching launch on February 20th has triggered rising investor and expert apprehension regarding the future path of Pi Network along with its default token, Pi.

From technical issues to the potential for mass selling, there are key risks that investors should be aware of. Here, we highlight three major factors that could affect Pi’s price after its mainnet launch.

Technical Indicators Show Weakness

Pi price charts are currently showing signs of vulnerability, with the token slipping below key support levels. In the past 24 hours, Pi Network’s IOU token has already seen a sharp 40% decline, prompting questions about its future price movement. 

The price has recently fallen below the $50 support level, which was previously considered a solid support level. This technical weakness could signal a further downturn in Pi’s price, especially if the trend continues after the mainnet launch.

Early Miners Could Flood the Market

Pi Network has a large base of early miners who have been accumulating tokens for years. The active miners operating on mainnet will probably cash out their holdings when the mainnet launches. 

A substantial market downturn would likely happen if the increased supply exceeds market demand during this period. The market entry of numerous coins would intensify the existing price reduction thus deepening the downward trend.

Airdrop-Based Tokens Often Drop After Launch

A substantial decline in value typically happens to cryptocurrencies that make their initial releases via airdrops or similar distribution methods. When Pi Network starts trading while widening its user base it may result in market flooding through airdropped tokens that trigger immediate token dumping. 

The history of airdrop projects shows this pattern has become standard so Pi Network may encounter the same outcome when supply exceeds market demand.

The mainnet launch of Pi Network requires investors to analyze these significant risks. Investors need to approach the market with caution while tracking Pi Network project developments along with market information.

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Frequently Asked Questions (FAQs)

1. Can I sell my Pi coins after the mainnet launch?

Yes, after the mainnet launch, Pi Coin will be available for trading on exchanges, allowing users to sell their tokens.

2. What risks could affect Pi Coin's price post-launch?

Risks include technical weaknesses, early miners flooding the market with tokens, and airdrop-based sell-offs which could cause price volatility.

3. Why is there concern about early miners flooding the market?

Early miners have accumulated large amounts of Pi Coins, and when the mainnet goes live, they might sell off their tokens, increasing market supply.
Coingape Staff
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