The Pi Network IOU token continued its downtrend as sentiment in the crypto industry waned. Pi Coin (PI) was trading at $33.90 on Monday, Sep. 2, down by over 5% in the last 30 days and by over 72% from its highest level this year. Pi’s IOU, launched in 2022, is not affiliated with the main project. It is listed on only a few exchanges and trades with low volume, making its price an unreliable predictor for the main token.

This price action mirrors that of other cryptocurrencies. Bitcoin (BTC) has dropped by over 20% from its year-to-date high, while Ethereum (ETH) is down by over 38% in the same period. The Crypto Fear and Greed Index has also dropped from the extreme greed zone of 90 in March to the neutral point of 42.5. Typically, cryptocurrencies perform better when market sentiment leans towards greed.

The volume of cryptocurrencies traded on both centralized and decentralized exchanges also saw a decline in August.

Pi Network’s IOU has retreated further due to the continued delay of the mainnet launch. In a statement last December, the developers mentioned that the network would transition from an enclosed mainnet later this year. However, for this to occur, the network needs to meet three key milestones.

Key Milestones for Pi Network Mainnet Launch

1. Know Your Customer (KYC) Verification

The team behind Pi needs to complete KYC verification for most pioneers. This process is ongoing, with over 13 million pioneers having moved to the mainnet. Recently, the developers upgraded the Pi Wallet, making it easier for users to complete their Mainnet Checklists.

2. Development of Decentralized Applications (dApps)

The Pi Network mainnet launch requires at least 100 dApps in the ecosystem. Currently, the network has fewer than 50 dApps, indicating more work needs to be done.

3. Market Conditions

The market needs to be conducive for the mainnet launch. If the ongoing consolidation continues, there is a high chance that Pi Network’s mainnet will not launch this year.

Performance of Tap-to-Earn Tokens

Data shows that despite its popularity, the Pi Network token may struggle when it starts trading. A notable example is Hamster Kombat, a popular tap-to-earn token, whose price dropped to a record low in the pre-market futures market. It has fallen by over 80% from its all-time high ahead of the official airdrop.

Other tap-to-earn tokens are also underperforming. The Notcoin (NOT) token has fallen by over 71% from its all-time high, while Pixelverse has crashed to a record low.

Pi Network shares some similarities with Telegram’s tap-to-earn platforms, where users earn tokens by clicking a button in the app. However, Pi has a dedicated standalone application, and its developers are focused on building an ecosystem before launching the mainnet.

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