Pi Coin Moves Lower

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Pi Coin Moves Lower

Pi Coin Moves Lower On Centralization Risks

The price of Pi coin keeps moving lower as the concerns over centralization remain a dominant theme. Also, there are serious concerns about the token unlocks.

The Pi Coin is trading near the $0.70 handle and has already lost 57% of its value. According to the experts, the market cap of Pi Coin is now just $5 billion.

Pi Coin Faces Multiple Risks

Just a while ago, the market cap of Pi Coin was near $11 billion which highlights the presence of strong bearish pressure.

The Pi Network is facing risks from multiple fronts. But the biggest one is centralization, and there's much that can be done about it!

The data from CoinmarketCap shows the coin has a supply of 100 billion. Out of that, only 7.15 billion coins are in circulation.

One key difference between Pi & other coins is that Pi can be mined from a mobile app. A user just has to tap a button to mine the Pi Coin. On the other hand, earning Bitcoin or other coins via mining require complicated hardware setup and a big investment.

The data shows that the foundation behind the Pi Network actually controls around 92 billion coins. So, there's no other way than to give out more coins to the public.

Also, what happens if the wallets of the Pi Foundation are hacked? The first thing they would do is to dump the tokens and that would push the Pi Coin prices to near zero.

Recently, Pi Network announced its ecosystem, and that pushed the price beyond $1.50. However, the price is now back towards the $0.60 handle.

Looking ahead, the key resistance levels for the Pi Coin are near $0.80, $0.90, and then $1.00. On the way down, the $0.50 support will remain a key pillar for the Pi Coin. Even if the price recovers in the short term, the key risk of centralization will remain in effect.

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