4 months ago
The long-awaited motorboat of Pi Network’s Open Mainnet triggered crisp terms movements for its autochthonal token, Pi (PI), connected Feb. 20, arsenic aboriginal enthusiasm gave mode to a swift sell-off.
Pi Network, which allows users to excavation crypto via a mobile app without energy-intensive hardware, transitioned from a closed beta strategy to an unfastened blockchain, enabling transactions beyond its ecosystem.
The displacement is expected to grow the token’s real-world usage and summation its accessibility connected outer platforms. Pi Network’s improvement squad said successful a statement:
“The modulation to Open Network volition alteration Pi to link with outer networks connected the Mainnet blockchain, allowing users to behaviour transactions extracurricular the Pi ecosystem.”
The upgrade besides paves the mode for imaginable speech listings and integration with decentralized applications. However, the roadworthy remains fraught with challenges owed to uncertainty astir the project’s legality.
Crash aft surge
Following the announcement, Pi surged 45% wrong an hour, reaching a precocious of $2.10, portion its trading measurement spiked implicit 1,700% arsenic speculation astir the motorboat fueled a buying frenzy.
However, the rally was short-lived. Within hours, Pi plunged much than 52% to a debased of $1.01, wiping retired gains from earlier successful the day. The token’s marketplace capitalization fell to $7.02 billion, raising concerns astir semipermanent terms stability.
With a full proviso of 9.7 cardinal tokens, Pi’s afloat diluted valuation (FDV) presently stands astatine astir $83.07 billion.
Analysts warned that aboriginal token releases could present further downward unit if request fails to support gait with supply.
Uncertainty remains
Since its inception successful 2019, Pi Network has attracted tens of millions of users, positioning itself arsenic a mobile-friendly alternate to accepted cryptocurrencies. Supporters judge the Open Network motorboat marks a large measurement toward broader adoption by enabling real-world transactions.
Despite the optimism, uncertainty remains. Critics constituent to unclear tokenomics, imaginable regulatory hurdles, and the lack of confirmed speech listings arsenic challenges that could bounds Pi’s semipermanent viability.
Meanwhile, its past of ineligible and regulatory troubles has besides raised interest successful the industry, with respective large exchanges denying its listing application. Binance yet fto the assemblage ballot connected the matter, which resulted successful an 85% favorable result for Pi.
However, the assemblage enactment does not alleviate the uncertainty astir the project, which was labelled a scam by instrumentality authorities arsenic precocious arsenic 2023.
The station Pi Network’s unfastened mainnet motorboat causes short-lived rally for token earlier terms crashes implicit 50% appeared archetypal connected CryptoSlate.
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