The Pi Network price continues to languish this month after an over 80% plunge from its all-time high. Its volume has crashed, and social media buzz has largely disappeared.
One reason for this price action is the elusiveness of exchange listings, with companies like Binance, Coinbase, and Upbit avoiding it. Let’s explore some of the reasons why these exchanges have not listed Pi Coin.
Pi Network Tokenomics Favor Insiders
Coinbase, Upbit, and Binance have not provided reasons for not listing Pi Network, so any explanations are based on our assumptions.
One potential reason they have avoided listing the coin is that its tokenomics severely favors insiders. A recent statement noted that the community has been allocated 65 billion coins, while the remaining coins are allocated to the core team, foundation reserves, and liquidity.
Therefore, the team controls 35 billion tokens, which are worth about $20 billion, while the community has been given $37 billion. This is notable since there are over 18 million pioneers and about 23 core team members.
At the same time, unlike Bitcoin, which is highly decentralized, Pi Network is largely centralized, with the team making most of the decisions. The problem with so much centralization is that it may lead to a crash if they decide to sell, as we saw with Mantra, whose price crashed by 90% within a day.
However, the counter-argument is that these exchanges have listed numerous meme coins with insider-favorable tokenomics. A good example of this is the Official Trump, where Trump entities are the biggest holders and beneficiaries.
Exchanges Could be Doing Their Review of Pi Coin
The other reason why Coinbase, Upbit, and Binance have not listed Pi Network is that they are likely reviewing the coin. Some exchanges, especially Coinbase, take a lot of time before they list new tokens as they conduct their research about them.
Binance and Upbit also do the same, which ensures that they only list credible tokens. Therefore, if this is the case, it’s likely that they will ultimately list it. For example, Upbit listed Orca just recently, despite having been around for years.
Pi Network KYB Process
As these exchanges research Pi, the team could also conduct research about it. Pi Network requires all exchanges seeking to list it to undergo strict Know Your Business (KYB) verification. It does this to ensure that its token is only traded on legal exchanges, which also helps to protect user funds.
Therefore, it’s likely that Pi Network’s core team is conducting a study on most exchanges.
Lack of Liquidity
Another possible reason Coinbase, Binance, and Upbit have not listed Pi Network is that the listed exchanges lack liquidity. Data shows that the coin had a 24-hour volume of $30 million, which is relatively low for a coin valued at over $4 billion. As such, this low volume means these exchanges don’t see the urgency of listing it.
