Pi Network Faces Delisting Threat as Price Drops Following China Warning

The price of Pi Coin is experiencing significant pressure after a warning from prominent Chinese financial groups identified it as a risky asset. This development has raised concerns about potential delistings from major exchanges, including OKX and Gate.io, which could further impact investor confidence in the cryptocurrency.

Regulatory Concerns Surround Pi Coin

A joint announcement from seven national associations, including the China Internet Finance Association, cautioned the public against engaging with virtual currencies that lack actual value or technology. The statement specifically labeled Pi Coin as an “air coin,” a term used in China for tokens perceived to lack transparency and utility. This warning has intensified fears among investors regarding the legitimacy of Pi Network and its associated cryptocurrency.

According to the regulatory notice, projects like Pi Network have been linked to frequent scams, prompting authorities to emphasize the need for investor protection and financial stability. Furthermore, the notice reiterated that virtual currencies do not have legal tender status in China, meaning they cannot be utilized for payments or investments within the country.

Exchanges Weigh Delisting Pi Coin

The heightened scrutiny from Chinese regulators is already affecting Pi Coin’s standing on various trading platforms. Several exchanges, including OKX and Gate.io, are reportedly considering removing Pi Coin from their listings to avoid regulatory complications. The ongoing regulatory backlash in China complicates the prospects for major exchanges, such as Binance, which may now find it unfeasible to list Pi Coin.

Recent tweets from Pi enthusiasts have warned followers about the risks associated with the possible delisting of Pi Coin. As of now, Pi Coin is listed on several platforms, including Bitget and CoinUp.io, but these listings may soon be at risk due to the latest regulatory developments.

The price of Pi Coin has declined by 7% this week, now trading at approximately $0.22. This represents a staggering 92% drop from its all-time high. The ongoing decline reflects waning investor confidence, exacerbated by repeated delays in project developments and new warnings from authorities.

Market analysts have noted that Pi Coin is currently trading below a critical threshold of $0.29. If the token fails to maintain its trendline around $0.223 to $0.225, further declines could accelerate, with predictions suggesting a potential fall to around $0.20, or even $0.18.

In light of these challenges, analysts stress the importance of clear communication from Pi Network regarding its open mainnet. Without transparent updates, the token is likely to continue facing downward pressure in the market.

The situation remains dynamic, with investors keenly observing the developments surrounding Pi Coin and the actions taken by exchanges in response to regulatory pressures. As the cryptocurrency landscape continues to evolve, the implications of these events will be closely watched by market participants and authorities alike.