In the dynamic world of cryptocurrency, the Pi Network has spent the last four years preparing, building, and refining its foundations, setting itself apart from Bitcoin. Unlike Bitcoin, Pi Coin has its own consensus basis, which supports its fundamental value. This popular cryptocurrency project allows users to mine Pi coins with their mobile devices for free, resulting in a substantial user base eager to explore ways for utilizing or trading their mined coins. Let’s explore it in this comprehensive blog.
Can Pi Coin be Sold?
A common query that has surfaced recently pertains to the possibility of selling Pi Coin, given its listing on exchanges such as Hubi, BitMart, and Hot Coin. However, the straightforward answer is no. Presently, Pi Coin cannot be sold on exchanges, as the Pi Network is still in the enclosed network phase of the mainnet. The transition to the open network phase and the completion of KYC verification are prerequisites for selling Pi Coin on any exchange.
Pi Token on Exchanges: An IOU Explanation
While Pi Coin is visible on exchanges, it is essential to understand that what is being traded is an IOU (I Owe You). This IOU is not the official Pi token, as explicitly warned by the Pi Network team. CoinMarketCap also highlights this distinction, cautioning users that the token on exchanges is an IOU and can’t be transferred between platforms.
Understanding IOUs
IOU, or “I Owe You,” is a concept illustrated by an example involving Alex and Jon. In this scenario, Alex sells gold that he currently doesn’t possess. Instead, he provides Jon with a token, an IOU, signifying his commitment to deliver real gold upon returning from Europe. Similarly, the Pi Network IOU token on exchanges allows users to purchase it, anticipating the exchange for the official token during the open mainnet phase.
Risks of Buying Pi IOU
The question of whether to buy the Pi IOU arises, and the answer is a resounding no. The genuine Pi Network coin is yet to be traded, making its actual price uncertain. Purchasing the IOU carries the risk of substantial loss, especially if the market price at the open network phase is significantly lower than the IOU purchase price. With the abundance of users mining Pi Coin for free, the future market dynamics remain unpredictable.
Ways to Sell Pi Coin
While selling Pi Coin on exchanges remains unfeasible, users can explore peer-to-peer (P2P) methods, both online and offline. The peer-to-peer approach involves negotiating the price and payment method directly with interested buyers, resembling the earliest methods of trading cryptocurrency in the Bitcoin era.
Conclusion
In conclusion, the Pi Network’s journey to establish itself in cryptocurrency has been marked by careful planning and preparation. As users navigate the evolving dynamics of Pi Coin, it is crucial to exercise caution and awareness, particularly when considering the purchase of Pi IOU on exchanges. The future value of Pi Coin remains uncertain until the transition to the open network phase, emphasizing the importance of informed decision-making in the rapidly changing world of cryptocurrency.
