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Thoughts on the Future Potential and Value of Pi Network as Open Mainnet Approaches

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What is Pi Network?

Pi Network is a platform that allows you to mine the cryptocurrency “Pi” using your smartphone. It was developed by a team including Dr. Nicolas Kokkalis from Stanford University. Its main goal is to promote the use and adoption of cryptocurrency among more people.

How Does Pi Network’s Value Fluctuate?

It is difficult to predict the future value of Pi Network. The following factors may influence its value:

  • User Count and Adoption: The more people use and support Pi, the higher its value is likely to rise.
  • Technological Advancement: The technological progress of the project and the capability of the development team are important.
  • Market Acceptance: If Pi is listed on exchanges and can be exchanged for other cryptocurrencies or fiat currencies, its value will be determined.
  • Regulation and Legal Environment: Regulations and legal environments in each country can also significantly affect the value of cryptocurrency.

Reasons Why Value Increases as Users Grow

The reason why value increases as users grow is based on the network effect and the principles of supply and demand. Specifically, the following points can be mentioned:

  • Network Effect: As more users utilize the Pi Network, the network becomes more valuable.
  • Improved Liquidity: As more users participate in transactions, the liquidity of Pi improves.
  • Increased Demand: As new users increase, the demand for Pi rises.
  • Ecosystem Development: With many users, the incentive for developers and businesses to create new applications and services using the Pi Network increases.
  • Increased Trust and Recognition: As the number of users grows, the trustworthiness and recognition of the Pi Network increase.

Methods to Promote Pi Circulation

For Pi to circulate, there are several steps and conditions. The following methods can be considered to promote Pi circulation:

  • Listing on Cryptocurrency Exchanges: When Pi is listed on major cryptocurrency exchanges, trading volume increases, promoting circulation.
  • Use in Commercial Transactions: By enabling the purchase of goods and services using Pi, it becomes usable in daily transactions.
  • Ecosystem Development: Developing applications and services usable within the Pi Network increases opportunities for users to use Pi.
  • User Education and Awareness: Educating and raising awareness among users about how to use Pi and its convenience will lead more people to use Pi.
  • Partnerships and Collaborations: Partnering with other companies and projects can promote the use of Pi.
  • Regulatory Framework Development: It is also important to develop regulations and legal environments in each country to ensure that the use of Pi is legal.

Measures Against Selling Pressure Upon Listing

While there is a possibility of selling pressure occurring when listed on cryptocurrency exchanges, its impact can be minimized by implementing the following measures:

  • Supply Restriction Upon Listing: Limiting the amount of Pi circulating at once can suppress selling pressure.
  • Staking and Lock-up Programs: Providing incentives for users to lock up Pi for a certain period can reduce selling pressure.
  • Establishment of Liquidity Pools: Establishing liquidity pools and providing liquidity makes it easier to absorb selling pressure.
  • Utilization of Market Mechanisms: Strengthening marketing and partnership activities to stimulate demand for Pi and balancing sellers and buyers is important.
  • Community Support: If the community believes in the long-term value of Pi, selling pressure may be alleviated.
  • Utilization of Decentralized Exchanges (DEX): Encouraging trading on decentralized exchanges can distribute selling pressure from centralized exchanges.

While some selling pressure after listing is unavoidable, implementing these measures can minimize its impact and aim for healthy market formation.