Hopes for a Pi coin launch in 2024 are fading amid concerns about the KYC verification process, falling cryptocurrency prices, and the lack of an ecosystem.
Pi Network (PI) IoU token has dropped by over 75% from its highest point this year and is hovering near its lowest level since July. This IoU is not affiliated with the official project and trades with low volumes at just a handful of exchanges.
This price action is primarily driven by concerns among analysts and pioneers about whether the mainnet launch will happen later this year, as developers promised in 2023.
The developers have set three essential conditions that must be met for Pi to transition from its enclosed mainnet to an open network.
The first, and simplest, condition is that most pioneers must be verified to prevent spam. So far, the developers have verified over 13 million users, most of whom have moved to the mainnet.
As part of this verification, the developers introduced the grace period algorithm to refine pauses based on system blocks.
The grace period, which started in July, ensures that pioneers must submit their initial KYC documents within the first three months and complete the process within six months. Pioneers who fail to complete the KYC process will likely lose their accumulated tokens.
Pi Network ecosystem growth challenges
The other two conditions for the Pi coin launch are harder to achieve. For example, developers aim for a thriving ecosystem of decentralized applications, which would give the Pi coin more utility. The mainnet launch will occur when these dApps reach 100.
It is unclear whether there are enough dApps in Pi Network’s ecosystem. Some of the most notable ones include the Pi Browser and the Fireside Forum. The developers also launched the Pi Ad Network, which will be used to run ads within Pi Network’s dApps.
The Pi coin launch will also depend on favorable market conditions or a cryptocurrency bull market.
The uncertainty surrounding the launch date explains why the Pi coin IOU price has dropped by over 75% from its highest point this year. While this IOU is not officially associated with the Pi Network project, its price would likely be performing better if there were clarity on the mainnet launch.
A fundamental concern about Pi Network is the real value of the mined Pi coins, which are currently worthless since they cannot be exchanged for fiat currencies. In the past, many similar coins have disappointed investors after their mainnet launch.
Most recently, DOGS (DOGS), a popular token on Telegram, tumbled by over 41% from its highest level last week. Similarly, the Sweat Economy token has dropped by 95% from its 2022 high. Before its mainnet launch, the Sweatcoin app had over 50 million downloads globally.
