Pi Network (PI) is a unique altcoin operating a dual-value system. However, this unique feature raises debates about its long-term sustainability.
Although the altcoin season has not yet arrived and PI's exchange price has significantly dropped, the gap between the two values of the dual system continues to widen. This growing discrepancy further amplifies doubts about the model.
Pi Network's Dual-Value System?
The holder community known as Pioneers is fully aware that Pi Coin currently has two different price levels.
The first is the internal value within the Pi ecosystem, called the Global Consensus Value (GCV), which is set at approximately $314,159, inspired by the mathematical number Pi. The second is the price on exchanges, which is currently around $0.60.
Pi Network's dual-value system is a bold experiment. It provides hope for believers but also carries significant risks.
According to investor Spock, who supports Pi Network, this system is feasible and may be part of an intentional strategy.
"Potential strengths include:
• Merchant trust and consistency within the ecosystem
• Stable economic environment for Pi-based apps and platforms
• Protection against volatility and market manipulation." – Mr. Spock explained.
However, he also acknowledges the risks the system faces. The large price difference could weaken trust. Additionally, many people could buy Pi at a low price on exchanges and use it at a much higher GCV rate within the community.
Additionally, he suggested that the Pi Core team might intervene to maintain GCV's credibility. For example, by limiting ecosystem participation to KYC-verified wallets and using smart contracts to integrate GCV.
A Fair Valuation or Delusion?
In reality, Pioneers continue to share claims supporting GCV. For instance, some point out that developers have integrated GCV into smart contract source code and shared it on GitHub. Others emphasize that communities in Thailand and Vietnam continue to promote and trade using the GCV rate.
"This movement is real. This mission is alive thanks to all of us. And this freedom? It's worth fighting for, and worth every effort and heart we put into it." – Pioneer Lumari said.
According to BeInCrypto's data, Pi's price has dropped by over 60% in May following co-founder Nicholas's public appearance.
With the current exchange price at $0.62, the GCV is over 500,000 times higher than the market value. This significant difference poses a serious challenge to the model's feasibility.
Overall, the sustainability of this model depends on maintaining community trust. The internal value model could lose relevance if more users start trading Pi based on market price rather than GCV.
Additionally, Pi's supply is estimated at 100 billion coins, which could mean the network's total valuation under GCV reaches 314 trillion dollars. This figure far exceeds the current world GDP of about 100 trillion dollars. However, this does not seem to shake the Pioneers' belief.
