Pi Coin Crashes 73% From Peak – Why Binance Is Avoiding Listing It?
Pi Coin, the cryptocurrency of the Pi Network, has taken a sharp hit, plunging over 11% and losing its crucial $1 support on CoinMarketCap. The sudden drop has also pushed Pi Coin from being the 11th largest cryptocurrency to the 24th position, marking a significant decline in its ranking. This downturn has raised concerns among investors, especially as Pi Coin underperforms compared to major cryptocurrencies like Bitcoin, Ethereum, and Dogecoin.
Pi Coin Price Plunge – What’s Happening?
At the time of writing, Pi Coin is trading at $0.8215, witnessing a 10.44% drop. The cryptocurrency touched an intraday low of $0.811, leading to a market cap decline to $5.55 billion. Meanwhile, trading volumes have surged by 57% in the past 24 hours, reaching $288.41 million.
Currently, Pi Coin has tumbled over 72.5% from its all-time high of $2.98 recorded on February 26. Adding to the woes, the coin is now dangerously close to its all-time low of $0.6152, which was seen on February 20.
Why Is Pi Coin Falling?
One of the biggest reasons behind Pi Coin’s downfall is reports suggesting Binance has rejected its listing. According to renowned crypto analyst Ceo Crypto25, Binance has officially declined to add Pi Coin to its exchange due to several critical concerns:
- Closed Mainnet Issues: Unlike other cryptocurrencies operating on decentralized, open networks, Pi Network is still enclosed. This limited phase of operation prevents open trading, making Binance hesitant to list it.
- Regulatory Compliance Concerns: Pi Coin has faced scrutiny regarding its compliance with financial and security regulations in various jurisdictions. Without clear approvals, Binance is unlikely to take the risk.
- Centralization Worries: Unlike Bitcoin and Ethereum, which are decentralized, Pi Network developers have retained significant control over the project, raising concerns about its long-term viability.
- Lack of Liquidity: Binance prioritizes listing cryptos with strong market presence, high trading activity, and liquidity. Since Pi Coin is still in its enclosed phase, it lacks external liquidity, restricting free trade on other exchanges.
- Massive User Base, But No Guarantee: While Pi Network has built a global community of millions of miners using mobile phones, this alone is not enough for a Binance listing. The project still lacks fundamental criteria required for major exchange listings.
Is Binance Making A Mistake?
Interestingly, crypto analyst Kim H Wong believes Binance is missing out on significant trading volume and revenue by not listing Pi Coin. Wong highlighted that Pi’s 24-hour trading volume often exceeds $500 million, and a Binance poll revealed that 86% of participants supported its listing. However, Binance may be delaying due to internal concerns that it has not publicly addressed.
Should Investors Be Concerned?
Despite the ongoing volatility, some experts believe Pi Coin still holds long-term potential. According to Wong, Pi is expected to stabilize and behave like a regular cryptocurrency once market conditions improve. Upcoming developments that could boost its value include:
- More exchange listings.
- Partnerships with merchants.
- Advancements in the Pi Network ecosystem.
- Increased adoption as more users understand Pi’s potential.
Pi Network’s Latest Move – .Pi Domain Auctions
Pi Network has recently introduced a .Pi domain auction system, bringing a new twist to its Web3 vision. These blockchain-based domain names function similarly to traditional web addresses but are exclusive to the Pi ecosystem. This could enhance the platform’s usability and increase demand for Pi Coin.
Some high-profile domains, like “Samsung.pi” and “Amazon.pi,” have already attracted bids as high as 45,000 Pi, indicating growing interest. Additionally, auction proceeds reportedly go back into the Pi ecosystem, further supporting development and expansion.
Final Thoughts
Pi Coin’s drastic fall and Binance’s rejection raise questions about its short-term potential. However, its large community, ongoing ecosystem developments, and speculative interest in domain auctions could drive future demand. While Binance remains hesitant, investors are advised to stay updated on Pi’s next moves and make informed decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.