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Pi Coin's Mainnet Launch: A Looming Price Plunge

Coin WorldTuesday, Feb 11, 2025 5:31 am ET

1min read

The long-awaited mainnet launch of Pi Coin, a cryptocurrency known for its simple mining model, has sparked concerns about a potential price plunge. Despite the initial excitement, several factors could contribute to a significant drop in Pi Coin's value. Here are the top five reasons why the Pi coin price may face a downturn after its mainnet launch.

One of the primary concerns surrounding Pi Network is the repeated delays in launching its mainnet. Initially, the mainnet launch and KYC process were expected to happen by 2024, but the launch has been pushed back to January 2025. These delays have frustrated investors, leading to a 50% price drop since November. If there are further delays, more people may sell their coins, driving the price down even further.

Another major reason for a potential Pi Network price drop is the likelihood of profit-taking. Many early miners have been waiting for years to sell their Pi coins. After missing the 2021 crypto bull run and enduring multiple delays, early adopters may decide to sell their tokens as soon as they become tradable. This could flood the market with coins and lower the price, especially if there isn't enough demand to absorb the extra supply.

History has shown that many tap-to-earn and airdrop-based cryptocurrencies experience a significant price decline post-launch. Recent examples include Berachain, which fell by 50-60% after its airdrop, as well as tokens like Hamster Kombat (HMST), Wormhole, and ZkSync, which saw similar declines. Pi might follow this pattern if the market isn't in a strong uptrend.

Timing also plays a role in market movements. If Pi Network's mainnet launch happens at the end of the first quarter, historical data suggests that this isn't the best time for many cryptocurrencies. Eventually, the third quarter tends to be a slow period, and Pi's price could struggle if it doesn't launch during a bullish market.

From a technical standpoint, Pi's price charts indicate potential trouble ahead. The token has already dropped below key support levels of $50 and $55, both of which previously held strong price floors. Additionally, it has fallen below its 50-day and 100-day moving averages, suggesting a bearish trend. However

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