Pi Network Mainnet Launch: 3 Reasons Pi Coin Price May Crash

Pi Network developers are preparing for the highly anticipated mainnet launch, expected to happen in March, allowing pioneers to monetize their accumulated tokens and developers to showcase their apps to their target audience.

The mainnet launch comes seven years after the network’s launch, which enabled pioneers to mine tokens on their smartphones. Despite the anticipation, several factors may contribute to a potential price crash after the launch.

Revenge Selling: A Potential Price Crash Trigger

One reason for a potential price crash is revenge selling, where pioneers who have been mining the token for years decide to sell all their tokens. This is largely due to the prolonged wait for the mainnet launch, missing recent crypto price surges in 2021 and the last three years, and the developers’ missed deadlines, such as the delayed know-your-customer verification (KYC) from November 31 last year to February 28.

Tap-to-Earn Tokens’ Post-Airdrop Performance

Another reason for a potential price crash is the historical performance of tap-to-earn tokens after their airdrop. Many tokens, such as Hamster Kombat (HMST), have crashed by 90% from their highest level. Other tokens like DOGS and Notcoin have also experienced significant drops. This trend may be relevant to Pi Network, a tap-to-earn platform where users accumulate tokens by tapping a button on the app.

These tokens often crash as users who have accumulated their tokens sell and convert them into fiat currencies. Recent examples of airdropped tokens, such as Berachain, Wormhole, and zkSync, have also plummeted after their token launches. As a result, many Pi Network pioneers may want to sell early to avoid similar losses.

Seasonality: A Factor to Consider

Additionally, the Pi Network mainnet launch may coincide with the end of the quarter, which historically is the second-worst period for cryptocurrencies due to the summer season. According to CoinGlass data, the average Bitcoin return in Q2 is 26%, followed by 6% in Q3. This seasonality aspect may contribute to a potential price drop if the launch occurs during this period.

For cryptocurrency investors and finance enthusiasts, it’s essential to consider these factors when evaluating the potential performance of the Pi coin price after the mainnet launch.

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