Pi Network developers are preparing for the long -awaited Mainnet launch. This launch, which is expected to take place in March, will allow users to sell the tokens they have accumulated and promote developers to introduce their applications. However, there are concerns that there may be a serious decline in Pi Coin price after the launch.
Waiting users make public sales
One of the biggest reasons for the possibility of Pi Coin price falling is that users who have been token for years have large sales. This is known as “Revenge Selling in the crypto market.
Pion users, called Pioneers, haven’t had the chance to sell their tokens for a long time. In 2021 and in the last three years, these investors who missed the major crypto bull seasons may want to realize their profits by selling rapidly after the launch.
Decrease trend of token with TAP-TE-EARN model
The price of the Pi Network may be required by the nature of the Tap-to-Earn mechanism. Many Tap-to-Earn Token, previously released, experienced a great collapse after Airdrop.
For example, Hamster Kombat (HMST) token lost 90 percent of the summit level after the launch. Similarly, projects such as Dogs and Notcoin experienced a major decrease. The fact that users want to largely turn their tokens into cash may cause a sharp decrease in the price of Pi Coin.
Seasonality and Effect on the Market
Pi Network’s Mainnet launch may be the end of the third quarter, which is seen as one of the weakest periods of the year. According to historical data, the summer months are usually stagnant for the crypto market.
CoNSS data shows that Bitcoin earns an average of 26 percent in the second quarter, but in the third quarter, this rate fell to 6 percent. If the launch coincides with a stagnant period in the market, the newly listed Pi Coin may not see the investor interest and the price may be likely to fall rapidly.
Conclusion
Pi Network Mainnet launch is expected with great excitement, while there are several important factors that can have negative effects on the price.
Intensive sales after the launch of users, Tap-to-Earn model token’s in the past, and seasonal factors, and seasonal factors increase the risk of Pi Coin’s depreciation.
