The popular mobile-mined Pi token is now trading on exchanges such as Houbi, Bitmart, HotCoin, and others.
And pioneers have been asking, “can I sell my Pi tokens?” The simple answer is NO. As you read on, I’ll explain why.
If this is the first time you’re hearing about Pi, read our previous posts to get onboard:
- Pi Coin Review – What You Should Know About The Pi Network!
- Pi Network Update! Mainnet Is Here | How To Cash Out Your Pi Tokens!
Otherwise, let’s get to the main gist.
Can I Sell My Pi Tokens?
Before I answer this question, I want to quickly introduce you to Bybit, a renowned crypto exchange where you can buy/sell many coins. Sign up now using my link and stand a chance to reserve a $30,000 deposit bonus.
You cannot sell all the Pi tokens you have mined so far; not at the moment.
However, you can use it to purchase goods and services on Reddit.
You cannot sell your Pi tokens right now because the Pi network is still in the enclosed network phase of the mainnet.
Before you can sell your coin on an exchange, it must first transition to the open network phase.
Also, you need to complete KYC verification to be able to transfer your tokens to a wallet from where you can sell them.
How come Pi tokens are trading on some exchanges?
The truth is, the Pi tokens currently trading on exchanges are an IOU and the Pi network team has warned that this Pi is not the official Pi network token.
On CoinMarketCap, there is a clear warning that it is an IOU and thus cannot be transferred between exchanges.
So, what exactly is an IOU? IOU stands for “I owe you.”
Let me paint a scenario.
John sells gold and he buys it from South Africa.
Assuming he does not have gold at the moment but Ola wants to buy gold from him.
Ola goes on to pay John for the gold and John hands him a token, saying, “this token is a gold IOU from me.”
In other words, “I owe you” gold. When I return from South Africa, you’ll give me back this token in exchange for real gold.
Now, Ola can sell this gold IOU to another person, and that person can sell it to another person until John returns from South Africa.
Whoever has the token can exchange it for real gold from John.
This is the same thing with the Pi network IOU token on these exchanges. You can buy it there and exchange it for the actual token in the open mainnet phase.
So, should you buy these PI IOUs?
I don’t think you should. Here’s why;
The real Pi Network coin is not yet traded, so no one really knows what the price is.
It could be below $1 or much above it; no one knows. The market will determine the price of the token at the open network phase.
As of press time, the Pi IOU is trading at $36.34 on these exchanges.
If you buy it now and the coin eventually lists at $6, You will lose $30.34 per coin.
You will only make a profit if it sells for more than $36.34 per unit. And I doubt this will be the case because a lot of people are currently mining Pi for free.
So,instead of taking the risk of buying the IOU, keep mining the coin.
If you are not mining already, you can use this link to begin.
Then if you want to sell your Pi, you can use it to buy products and services from Reddit. Just search for it there.
Let me know if you have any questions in the comments section.
Hey! See how Mr. Jude completed his KYC on the Pi Network 👇
I am an avid enthusiast in the field of cryptocurrency and blockchain technology, with a proven track record of staying abreast of the latest developments in the industry. My expertise extends to understanding the intricacies of various blockchain projects, including their underlying technologies, tokenomics, and market dynamics. Over the years, I've actively participated in discussions, forums, and research related to cryptocurrency, gaining a comprehensive understanding of the evolving landscape.
Now, delving into the concepts presented in the article about the Pi token and its current trading status:
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Pi Token and Mainnet Phases: The Pi token is discussed in the context of its trading on exchanges such as Huobi, Bitmart, HotCoin, among others. The article mentions that users are unable to sell their Pi tokens at the moment because the Pi network is still in the enclosed network phase of the mainnet. This implies that the Pi network is undergoing a phased rollout, with the current phase restricting token sales.
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Use of Pi Tokens: The article suggests that while users cannot sell Pi tokens, they can use them to purchase goods and services on Reddit. This introduces the concept of utility for the Pi token beyond traditional trading.
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Transition to Open Network Phase: The article explains that for users to sell their Pi tokens on an exchange, the network must transition to the open network phase. This is a common practice in blockchain projects where different phases, such as closed testing phases and open network phases, are implemented to ensure a smooth and secure transition.
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IOU (I Owe You) Concept: The article introduces the concept of IOU, which stands for "I owe you." It likens the Pi tokens trading on exchanges to IOUs and explains that these tokens represent a promise of the actual Pi network token when the network transitions to the open mainnet phase.
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Risks of Buying Pi IOUs: The article provides a cautionary note about buying Pi IOUs on exchanges. It explains that these tokens are not the official Pi network tokens and that their value is uncertain until the network reaches the open phase. The analogy of an IOU for gold is used to illustrate the temporary nature of these tokens.
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Market Speculation: The article discourages buying Pi IOUs due to the speculative nature of their current market value. It suggests that the real value of Pi tokens will be determined by the market when the network reaches the open phase. The example of potential losses if the token price drops is highlighted.
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Encouragement to Mine Pi: The article advises readers to continue mining Pi instead of buying IOUs, emphasizing the potential risks associated with IOU purchases. It provides a link for those not yet mining to get started.
In conclusion, the article aims to inform readers about the current status of Pi tokens, the trading of Pi IOUs, and the potential risks involved in buying these tokens before the network transitions to the open phase.
