The Pi Core Team (PCT), responsible for the Pi Network, has taken a significant step to prevent potential sharp declines in the cryptocurrency market. By purchasing millions of Pi Coins from centralized exchanges, PCT has established a supporting sub-wallet that actively plays a role in maintaining price stability. According to crypto analyst Dr. Altcoin’s data, this move serves as an urgent intervention to prevent a loss of value following the unlocking of Pi Coin.
Massive Purchases from Centralized Exchanges
Dr. Altcoin’s on-chain data indicates that the newly created sub-wallet accumulated approximately 48.5 million Pi Coins in a short period, translating to around 31 million dollars at current values. These acquisitions by PCT are viewed as an alternative solution to the typical practice of “burning” tokens to reduce circulation. However, experts caution that this is merely a temporary measure.
The active purchases made by the sub-wallet reduce the number of tokens in circulation, thus alleviating supply pressure. This short-term strategy prevents prices from dipping below certain levels. Nevertheless, the lack of a long-term strategy raises concerns among investors, particularly about how long these purchases will continue and how funding will be sustained.
Price is Protected but Sustainability is Debatable
Recently, Pi Coin’s price has seen an increase of about 6%, hovering around $0.6. The rise in trading volume may reflect the confidence the PCT generates in the market. However, market analysts point out that this strategy will likely only produce short-term effects.
According to Dr. Altcoin, these purchases by PCT create a “buffer zone” effect to slow down sudden drops. However, the long-term sustainability of this method remains questionable. A significant portion of the tokens is still locked, and similar interventions may be required as they become unlocked.
Some investors harbor optimistic expectations for prices to rise as high as $5. However, should PCT cease its purchases, prices could potentially drop to $0.3. This indicates that the market still relies on artificial means to maintain balance.
Investors are particularly curious about how PCT is financing these purchases and whether they plan to devise more permanent solutions in the future. Analysts emphasize the importance for investors to act cautiously and strategically to avoid being influenced by short-term fluctuations.
