Three Reasons Why the Pi Network Price May Crash After the Mainnet Launch

Pi Network developers are gearing up for the highly-anticipated mainnet launch, which is expected to happen in March.

Pi Network developers are gearing up for the highly anticipated mainnet launch, which is expected to occur in March.

This launch will enable pioneers to monetize their accumulated tokens and developers to showcase their apps to their target audience.

The launch will take place over seven years after the developers launched the network, allowing pioneers to mine tokens on their smartphones.

While much information about the mainnet launch, including the date and price, has yet to be disclosed, some speculate that the Pi coin price will begin trading at $3.14, which is the value of pi. Here are three reasons why the Pi Network price could crash after the mainnet launch.

Pi Network price may drop due to revenge selling

The first and primary reason why the Pi coin price could crash after the mainnet launch is revenge selling. This occurs when pioneers who have been mining the token for years decide to sell all of their tokens.

The reason for this is that these pioneers have endured a lengthy wait for the mainnet launch to materialize. They missed out on the recent crypto price surges of 2021 and the past three years.

Furthermore, Pi Network's developers have disappointed them by missing key deadlines, such as delaying the know your customer verification (KYC) from November 31 last year to February 28.

Tap-to-earn tokens crash after the airdrop

Another reason why the Pi con price might crash after the airdrop is that many tap-to-earn tokens crash after their airdrop. For instance, Hamster Kombat (HMST) has crashed by 90% from its peak in September last year.

Other tokens, such as DOGS and Notcoin, have also declined. This is significant because Pi Network is a tap-to-earn platform where users earn tokens by tapping a button on the app. The only distinction is that Pi has created its own blockchain and ecosystem, including a browser and the Fireside Forum.

These tokens crash as a large number of users who have accumulated their tokens sell and convert them into fiat currencies.

It's not just tap-to-earn tokens that crash after airdrops; recently airdropped tokens, such as Berachain, Wormhole, and zkSync, have all plunged after their token launches.

As a result, many Pi Network pioneers will be eager to sell early to avoid the fate of most tap-to-earn holders.

Seasonality to play a factor

Finally, the Pi Network mainnet launch is expected to occur in the last days of the quarter. According to CoinGlass data, the third quarter is typically the second-worst period for cryptocurrencies, coinciding with the Summer season.

The average Bitcoin return in Q2 is 26%, followed by 6% in Q2. As such, there is a possibility that the Pi coin price will drop if the seasonality aspect comes into play. Newly launched airdrops tend to perform well during crypto bull runs.