Pi Network Offers Incentives for Users to Lock Up Tokens
Pi Network, the mobile-based crypto-mining project, has introduced a new feature called “Lockup” that rewards users who lock their Pi tokens in their Pi Wallets. While this feature is promoted as a way to support the ecosystem and encourage long-term engagement, there may be hidden implications to consider.
When users lock their Pi tokens, they become inaccessible until the set duration ends. This not only helps stabilize the network but also limits the number of tokens available for sale when the Mainnet launches. By enticing users with higher mining rates, Pi Network ensures that a significant portion of Pi tokens are locked away, making it challenging for holders to sell their tokens quickly.
This strategy allows Pi Network to control the token supply and maintain its value, potentially preventing a market crash. It may also explain the delays in the Mainnet launch, as a massive sell-off could have been a concern.
However, this approach raises concerns about transparency and the true benefits for users. Are the higher mining rates worth the trade-off of locking up tokens, especially in a volatile and uncertain market?
While the Lockup feature may theoretically support a smooth ecosystem, it’s important to question whether this move truly serves the community’s best interests or if it’s a clever tactic to manage supply and demand dynamics in favor of the network.
PI coin’s IOU price on HTX experienced a sudden spike of 16% on July 9, reaching a daily high near $37.7 before retracing some of the gains. This surge may be attributed to the anticipation of an open mainnet launch.
In the event of an uptrend continuing, the PI coin price rally could face resistance around $39 and $43. Conversely, a downtrend could test the support level near $34, and breaking this support could lead to a drop in the price to around $31 before a potential recovery.
The RSI for PI coin remains neutral, with a score of 48.84 on the daily charts.