Pi Coin's Price Drops 11% Amid Listing Hurdles on Binance

Pi Coin, a cryptocurrency known for its price volatility, has encountered significant obstacles in gaining a foothold on major exchanges like Binance. The token's price has seen dramatic fluctuations, peaking at $2.98 before dropping to $0.50, and is currently trading at $0.63, down over 11%. One of the primary reasons for Pi Coin's struggles is its absence from major exchanges, which limits its visibility and trading opportunities.

Nguyễn Hà Minh Thông, founder of Cabo Capital, has offered insights into why Binance has not listed Pi Token. According to Thông, the Pi community's belief that the project does not need Binance is misguided. Without recognition from major exchanges, Pi will continue to face skepticism and struggle to achieve real market value. This lack of recognition is a significant barrier to Pi Coin's growth and acceptance in the broader cryptocurrency market.

One of the key issues is the limited open market activity of Pi Network. The mainnet has been live since late 2024, but it remains in an "enclosed" state, meaning transactions are restricted to its internal ecosystem. Binance prefers projects with fully open, public blockchains to ensure transparency and market stability. This closed nature of Pi Network's mainnet makes it less attractive to Binance, which values transparency and open market activity.

Another concern is the unclear tokenomics of Pi Coin. The total supply is reported to be 100 billion tokens, with only about 6.8 billion in circulation. The Pi Core Team has also reduced the supply by removing 10 million tokens without clear explanations, raising concerns about potential price manipulation. Binance requires clear data on token distribution to avoid risks, and the lack of transparency in Pi's tokenomics is a significant hurdle.

Regulatory concerns also play a role in Binance's decision. Binance is under regulatory pressure globally, especially in the U.S., where legal issues around money laundering and financial compliance are serious. Pi Network has not been officially recognized by any regulatory body, and in some regions, it has been flagged as a "multi-level marketing project." Listing Pi could expose Binance to legal risks, making it a less attractive option for the exchange.

Liquidity and market activity are also crucial factors. For a token to be listed on Binance, it needs strong liquidity and trading volume on major exchanges. Pi currently trades mainly through OTC channels like Telegram and small exchanges, with unstable prices. Binance prefers tokens that have experienced real price discovery in open markets, and Pi's limited market activity makes it less appealing.

Centralization issues further complicate Pi Network's prospects. The network has faced criticism for its high level of centralization, with the Pi Core Team controlling all mainnet nodes. This contradicts the decentralization principle that major exchanges like Binance prioritize, as seen with Bitcoin and Ethereum. The centralized nature of Pi Network is a significant barrier to its listing on Binance.

In summary, Pi Coin's struggles to gain traction on major exchanges like Binance are due to a combination of limited open market activity, unclear tokenomics, regulatory concerns, lack of liquidity, and centralization issues. These factors make it less attractive to Binance, which values transparency, market stability, and decentralization. Until these issues are addressed, Pi Coin is likely to continue facing challenges in achieving real market value and gaining recognition from major exchanges.