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- Massive $Pi token unlocks set to flood the market.
- Daily migrations add pressure to already weak $Pi demand.
- Centralized control limits Pi Network’s expansion and liquidity options.
According to @pinetworkmember, $Pi is heading into a volatile period with major concerns surrounding its upcoming token unlock schedule. Between August and December, over $620 million $Pi tokens will be released into circulation, creating fears of a significant market crash.
The tokens estimated to enter the market within August alone have reached 139 million. September will record 116 million, October 93 million, and November 102 million. December is estimated to have the biggest release in history, and 170 million tokens will be unlocked.
In addition to these monthly releases, daily migration is contributing between $3 and $5 million $Pi tokens to the system. Weaker demand and scarce sources of liquidity are causing ecosystem problems to support this growth in supply. Present indications suggest that we lack buyers, trading, or both in proportion to the increasing circulation.
Pi Network Faces Liquidity Risk Amid Centralized Ecosystem Control
The Pi Cores Team has developed tools such as the Pi App Studio, allowing low-cost and accessible app development for the user. Nevertheless, such a step is not the only step that attracts outside communities or brings about enough ecosystem activity.
There is a growing concern in relation to the unwillingness of the project to collaborate with other families of developers and outside projects. Lack of cooperation with crypto exchanges continues to restrict external adoption and reduce available liquidity. The cry is that the Core Team is never interested in decentralizing the project because they would then lose control of it.
Pi’s reticence to attract outsiders is regarded as a key threat to its future. Critics believe that in the absence of healthy cooperation, $Pi will never attract new users and investors. The founders who have worked for years to support the network can feel their work degraded by the token flooding of the market.
As soon as more than half a billion tokens become available and no definite market appeal can be observed. A sustainable and severe crash of $Pi might be expected. The months ahead are crucial to the project’s future as stakeholders observe price performance and the level of demand.
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