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and 362.99 million was unlocked, locked supply grew by 104.41%, and unlocked supply surged by 132.44% over one year. Whichever way you view it, this pace of supply growth is unsustainable
Inflation dilutes value. When the supply of an asset increases too rapidly without a matching increase in demand, it loses its value over time.
Simply put, Pi’s rapidly growing supply means each new token is worth less than the one before it, assuming demand doesn’t rise proportionately.
If the circulating supply of Pi increases from 4 billion today to 8 billion tomorrow, but the demand from individuals or businesses remains unchanged, each Pi will lose buying power. Consequently, Pi holders will see their holdings’ value decrease simply because there are more Pi tokens in circulation.
Moderate inflation isn’t necessarily harmful; it can keep the economy dynamic and even reward those who maintain the network. But what Pi is experiencing goes far beyond “healthy inflation.” It’s expanding at a pace that appears to undermine the token’s value.
The whitepaper mentions that Pi Network is capped at 100 billion tokens. Here’s where it gets even more alarming—the whitepaper itself acknowledges the likelihood of further inflation:
Where Does Inflation in Pi Originate From? The inflation in Pi primarily stems from its mining rewards. Pi’s reward system is based on several variables:
Base Mining Rate (B), which is dynamically adjusted; Lockup Reward (L); Security Circle Reward (S); Referral Team Reward (E); Node Reward (N); App Usage Reward (A); Future Contributions (X).
The primary concern here is the Base Mining Rate (B). Calculating B independently is a complex undertaking, as it involves network-wide data that isn’t publicly accessible, like the total Pi mined by all users the previous day and the total of all active users’ mining coefficients.
The Inflation Problem #Pi Network Doesn’t Talk About
The issue of inflation is something the Pi Network doesn’t seem to address. Determining the historical supply of Pi is challenging, as this information has never been made available. However, a BSCN article from August 2023 indicates that 1.97 billion Pi had migrated to Mainnet by that time, with 1.29 billion locked by users (Figure 2).
As of Sept. 26, 2024, a total of 4.07 billion Pi had been migrated, with 1.35 billion remaining locked, according to Pi Door. This reflects a 106.6% increase in supply in a little more than a year.
By Jan. 9, 2025, ExplorePi showed 5.56 billion Pi migrated, with 659.88 million locked. This means supply grew by another 36.61% in just three months.
That level of inflation is devastatingly high. Inflation at this rate ensures that value won’t be sustained, which is ironic given the Pi whitepaper’s strong criticism of Bitcoin’s perceived shortcomings.
Pi positions itself as a superior peer-to-peer electronic cash system, yet Bitcoin’s inflation rate stands at just 0.8% annually. The closest comparison to Pi’s inflation might be Worldcoin, which saw a 261% increase in supply from September 2023 to September 2024 (Figure 4).
From another perspective, one could argue that migration isn’t true inflation since it involves moving existing tokens rather than minting new ones. However, the real issue is that supply keeps increasing even before the launch. To understand the liquidity situation better, we can examine the locked and unlocked supply figures on ExplorePi.
According to ExplorePi, as of December 2024, 4.17 billion Pi were locked by users, while 843.72 million remained available as unlocked supply. Compared to December 2023, when 2.04 billion was locked,
Pi Network continues to operate in its “Enclosed Network” phase following the Mainnet launch in December 2021. Despite Mainnet being live, it functions within a firewall.
Users who complete KYC can transfer their balances to Mainnet, but they are confined to Pi’s ecosystem.
As the world waits for Pi to open up, crypto exchanges HTX, BitMart, and Gate.io offer a Pi Network “I Owe You” (IOU). But these IOU contracts are not actual Pi—they are just promises to deliver Pi once it’s available. They serve as speculative placeholders that people trade based on the anticipated future worth of Pi.
The IOU price of ~$43 on HTX as of Jan. 13, 2025, lacks any substantive correlation with Pi’s current usability or market presence. These prices are indicative of expectations, which can sometimes inflate perceptions beyond the bounds of reality.
Taking Pi’s supply into account, the inflated and misleading nature of the IOU price becomes apparent. As of December 2024, the unlocked supply of Pi stands at 843.72 million, with 4.17 billion still locked, yet these locked coins should still be considered part of the circulating supply.
The rationale is that these coins were once part of the available supply before users locked them up after mining. They had circulated, and users later locked them voluntarily to maximize their mining rewards. Reintroducing them brings Pi’s total supply to 5.01 billion.
With HTX’s IOU price, Pi’s speculative market cap hits a staggering $214 billion. Think about that—this number positions Pi just below Ethereum (ETH), the second-largest cryptocurrency.
It’s unreasonable because Pi lacks the broad use case or ecosystem of BNB, Solana (SOL), or Toncoin (TON), yet it surpasses them in value at this inflated market cap.
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Just in case you are caught in the #pi open network launch fever and you are becoming really desperate, looking to sell your other crypto holdings and go all in to buying the PI token from exchanges already selling the IOU's for as high as $60. My candid advice is DONT TRY IT
It is a very big psychological trap that both the #PiCoreTeam PI team and their community members are just preparing for you.
I will analyze this later but first lets look more at the token dynamics, I am continuing this from my previous post, in case you haven't read that, just check my post list and you will see the other PI post there
Tokenomics Cont'd.
Considering that Pi’s codebase is largely derived from Stellar with only minor tweaks, it’s hard to rationalize its valuation being much higher than Stellar’s, which stands at approximately $12.2 billion.
Assuming Pi’s valuation surpasses current estimates, a $15-billion market cap appears to be the maximum achievable at this stage. Consequently, Pi’s price would stabilize at around $3 per coin. However, this calculation does not consider the effects of inflation and the anticipated sell-off once the blockchain transitions to the open network phase.
With a maximum supply of 100 billion Pi and a market cap of $15 billion, the price per coin could potentially drop to $0.15 once all Pi are mined.
This is my point of view from a professional aspect of Blockchain analysis and Tokenomics research.
The power of a die hard community cannot also be underestimated.
THE TRAP:
This is something i have learned the hard way, but willing to share so others don't make the mistake.
So let's not forget that the Circulating supply of the PI token is approximately about 5 billion from the analysis I gave above. Also note that all of these tokens are already mined by individuals and as soon as the coin is available of exchanges more than 90% of these holders will dump their bag.
Follow me to get notified when the final part of the article is dropped.
This is not the true interpretation, what this means is the exchanges that PI applied to be listed on. Bybit outrightly rejected listing PI, calling it a Ponzi Scheme.
All You Need to Know About PI Coin Before FEB 20TH Listing
PI is a community driven token that claims to take proof of work through mining and make it better than the traditional bitcoin mining.
The Pi network has been in operation for about 6 years now and cliams to have over 40 million users with about 10% actively mining the PI coin on thier app.
The Blockchain technology of PI is a complete replica of the XLM (Stella Lumen) blockchain technology and not a hard fork as most people say.
The original idea of the PI network is to create a community
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Hamster Kombat the largest Tap to earn game on Telegram had finally released the token result of all participants on the app.
The Airdrop Distribution was based on the following criteria:
Passive income Earn Tasks Friends Achievements Keys
#HMSTR tokens were given for each of the above criteria .
The Token airdrop has also been divided into 2 phase.
Next Unlocked Unclaimed.
We are still unclear on the particular category users will be able to claim, but according to some rumors already, the airdrop will have a vesting period of 2 years for price protection.
The Next unlocked is the token that users will be able to claim, if we are to go with the rumours .
Anyways, let's keep our fingers 🤞 crossed on this one, the most important thing here is the price of the token.
Our token price prediction is $0.5, this is because the current pre market price on Bybit is $0.1, after they come on to #BinanceLaunchpol the listing price should at least 5X to our prediction.
Notcoin just hit it's All Time High, and we already predicted this in our community.
This are some of the reasons why it is a world changing project and can be compared to #Bitcoin.
Now, just as we have said in some of our earlier articles and analysis in our community , #Notcoin has the potential that many who weren't actively involved in the project could not see.
1. Firstly, the $NOT token is on the $TON Blockchain ecosystem, which is now one of the fastest growing Blockchain network, due to its TVL and also adaption.
2. The Notcoin token is also the governance token for the TON web3 ecosystem and is already adapted by several growing projects using the TON Chain ecosystem .
3. Thirdly, the Notcoin community was as at the time of listing one of the largest and fastest growing community in the cryptocurrency space, making it easier for shilling by it's community members and also attractive for big money investors.
4. Finally the TON Blockchain have a lot of investors financial power to push this projects and they are holding nothing back on that. Earlier this month, one of the core members of the team, claimed to HODL a certain number of the token, and hinted on seeing it through till it 100X.
if you were an early adapter of the Notcoin project, then you should also be some dollars richer, if you weren't, then don't worry, there are still a lot of upcoming opportunities.
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🚀 $NOT surged by ~40% in a single day without any major announcements from the project.
▪️ To prevent speculation about the reasons behind this growth, the CEO of DWF Labs offered a hint himself 🧐
👀 It's worth noting that DWF Labs is a well-known market maker with a questionable reputation.
Now, just as we have said in some of our earlier articles and analysis in our community , #Notcoin has the potential that many who weren't actively involved in the project could not see.
Firstly, the $NOT token is on the $TON Blockchain ecosystem, which is now one of the fastest growing Blockchain network, due to its TVL and also adaption.
The Notcoin token is also the governance token for the TON web3 ecosystem and is already adapted by several growing projects using the TON Chain ecosystem .
Thirdly, the Notcoin community was as at the time of listing one of the largest and fastest growing community in the cryptocurrency space, making it easier for shilling by it's community members and also attractive for big money investors.
Finally the TON Blockchain have a lot of investors financial power to push this projects and they are holding nothing back on that. Earlier this month, one of the core members of the team, claimed to HODL a certain number of the token, and hinted on seeing it through till it 100X.
if you were an early adapter of the Notcoin project, then you should also be some dollars richer, if you weren't, then don't worry, there are still a lot of upcoming opportunities.
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🚀🚀 Breaking News: Ethereum’s ETF has been approved!
LFG! We’re only just getting started 🔥
In a long and arduous journey to global relevance, the long-awaited and anticipated Spot Ethereum #ETHETFS ETF approval has finally been approved by the US Securities and Exchange Commission (SEC).
This news comes as a light at the end of the tunnel as the battle for the $ETH /ETF approval has lingered for months keeping analysts and crypto enthusiasts expectant.
Before the approval, several applications for the Spot Ethereum ETF have been sent by large multinational organizations such as VanEck, ARK21 Shares, Hashdex, Invesco Galaaxy, Franklin Templeton, Fidelity, and the world’s largest asset manager, BlackRock.
This goes to show how important the Spot ETH ETF approval has been to the crypto community.
What happens next? Expect alts to move higher as risk-on sentiment increases.
However, we might see a slight leverage unwinding over the next week as people close out positions.
Stay updated with Dipprofit, join our community today, look at our previous post to gain access to the community. 👇
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Missed all the #Notcoin hype? There's still a chance to earn with the same app but on a different chain! Do not miss out on this opportunity...
I've found a similar project where you can earn even more👇🧵
It's called 💥HAMSTER KOMBAT 💥
Are you tired of boring, monotonous games on your smartphone? Do you want to play something that will give you excitement and at the same time will allow you not to waste time and earn token?
Perform simple tasks that take very little time and get the opportunity to earn money!
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Joe Biden Enters the Race for the Attention of the Crypto Community!
Two weeks ago, the SEC was against the Ethereum ETF, but suddenly there was a 180-degree turn. 🧐
This is likely a political decision, as the current president and the Democratic Party desperately need the votes of the younger generation in the upcoming presidential elections.
The Biden administration's stance on cryptocurrency seems to be softening. The US Senate voted to repeal "SAB 121".
👀 Biden is shifting his aggressive rhetoric towards the crypto industry to a more friendly tone. The Ethereum ETF is the first sign of this. He doesn't want to lose voters in a tough race for the presidency.
Meanwhile, Trump has started accepting donations in crypto.
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In a startling turn, the blockchain-based gaming platform Gala Games fell victim to a significant security breach, leading to the unauthorized minting of 5 billion GALA tokens, cumulatively valued at over $200 million.
This incident, which unfolded on May 20, 2024, exposed the fragility of decentralized systems and the dire need for robust security measures.
The exploit was first identified by a Solidity developer known as 0xquit, who reported that a compromised or rogue admin address was used to mint the tokens.
His revelation pointed toward the possibility of an internal security lapse or an external intrusion from a group of attackers. The attacker’s potential to create an additional 12 billion tokens was thwarted when the exploited address was blacklisted, effectively preventing any further unauthorized actions from that address.
In response to the breach, the Gala Games team acted swiftly to blacklist the hacker’s address, halting the sale of more tokens and limiting the damage.
The CEO of Gala Games, Eric Schiermeyer, took to social media to express his distress over the incident, acknowledging the failure in internal controls and assuring that steps were being taken to prevent future occurrences.
Schiermeyer stated, “We messed up our internal controls. This shouldn’t have happened, and we are taking steps to ensure it doesn’t happen again. We believe we have identified the culprit, and we are currently working with the FBI, DOJ, and a network of international authorities.
Check the replies section to join our growing community as we help you power up your crypto journey.
Breaking : Bitcoin ETF Inflows Surpasses Daily Supply By 7x
In a new report, the Bitcoin ETF inflow, has broken the daily supply record, creating room for a possible pump.
The recent surge in Bitcoin ETF inflows, surpassing the daily supply of newly minted Bitcoins, is an important sentiment Indicator in the crypto market.
The increase in $BTC ETF inflows , exceeding the daily supply of newly created Bitcoins, creates an imbalance in supply and demand.
This could lead to increased upward pressure on Bitcoin’s price, as more institutional investors seek to invest in the asset through Bitcoin ETFs.
The difference between supply and demand, driven by the Bitcoin ETF inflows, may result in higher price volatility. This volatility could increase as traders and investors adjust their positions in response to changing volatile market conditions.
The fact that Bitcoin ETF inflows are surpassing daily supply indicates growing confidence among institutional investors in Bitcoin. This confidence could attract more institutional players to the crypto market.
In summary, the phenomenon of Bitcoin ETF inflows surpassing daily supply indicates a growing crypto market with increasing institutional participation. While this trend could lead to short-term price volatility, it also shows a shift in sentiment.
Impact of Institutional Interest
Institutional investors, due to their large capitals, have a notable influence on Bitcoin price. The increase in institutional investments in Bitcoin ETFs has contributed to recent price surges in the crypto market.
As institutions invest more in #bitcoin through ETFs, then the demand pushes up Bitcoin’s price. This has led to substantial price movements, exemplified by Bitcoin’s recent climb to $72,000.
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If you missed the #Notcoin project then you still have a lot of opportunities to key into some crypto projects with great potential currently carrying out their airdrop campaign.
So $NOT just dropped after months of mining and shilling on telegram and by the community.
It is one of the many airdrops that has made lots of crypto enthusiast a fortune in the crypto space.
Below are some of the most promising crypto projects currently doing their airdrop campaign to gather and grow their community. $TapSwap $PARAM $GRASS $OverProtocol
To participate in any of the above airdrop, kindly join our community using the link below, after joining, check the pinned message to gain access to all the airdrops campaigns on dipprofit. 👇
bit . ly / Dipprofit
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bit . ly / Tradingandcryptoupdates
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Do not miss out on these life changing opportunities. Join our community today and become a crypto Pro.
Do not forget to give a Tip as it can always aid more of our research. Catch you on the next one.
If you missed the #Notcoin project then you still have a lot of opportunities to key into some crypto projects with great potential currently carrying out their airdrop campaign.
So $NOT just dropped after months of mining and shilling on telegram and by the community. It is one of the many airdrops that has made lots of crypto enthusiast a fortune in the crypto space.
Below are some of the most promising crypto projects currently doing their airdrop campaign to gather and grow their community.
$TapSwap $PARAM $GRASS $OverProtocol
To participate in any of the above airdrop, kindly join our community using the link below, after joining, check the pinned message to gain access to all the airdrops campaigns on dipprofit. 👇
bit . ly / Dipprofit
Remove the spaces from the link above after copying.
Also ensure to subscribe to the websites Newsletter to gain first hand access to the latest airdrop opportunities and also read the guides on how to qualify for the airdrops. 👇
bit . ly / Tradingandcryptoupdates
Remove the spaces from the link above after copying
Do not miss out on these life changing opportunities. Join our community today and become a crypto Pro.
Do not forget to give a Tip as it can always aid more of our research. Catch you on the next one.