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Hello, this is Coinscript.

In today’s episode:

• 🎉 Introducing Weekly Reader Topic!

• ✍️ Pi Network Launched on Mainnet Today!

WEEKLY READERS TOPIC

Introducing Weekly Reader Topics!

Here is the deal.

We’ll send you a form each week where you can post your questions and wishes for us to write about. 

We will then choose and write about one or more of the most frequent or interesting topics besides our regular content.

Sounds cool?

Great!

Now fill out this form and let us know about your favorite topics or questions you have for us!

TOP STORY

Pi Network Launched on Mainnet Today!

First, let’s take a look at what Pi Network even is…

Pi Network is a cryptocurrency project that allows users to mine digital currency directly from their mobile devices.

The project has reportedly amassed over 70 million users worldwide, however, there is a lot of speculation over the true figure of users.

So, what do the users do?

Users, known as “pioneers” mine Pi, validate transactions, and support the ecosystem’s growth.

What makes this project unique is that there is no longer a need for big expensive mining rigs, instead you can simply mine Pi with your mobile phone.

“Oh no, mobile phone mining? I bet this makes each phone crash harder than Delta plane.”

Actually, no.

Mining is achieved through a consensus algorithm adapted from the Stellar Consensus Protocol (SCP), which relies on a trust-based network instead of your classic proof-of-work (PoW) system, which makes your electricity bill higher than rent.

Pioneers can increase their mining rate through several activities:

• Building security circles: Adding trusted members to one’s security circle enhances network security and boosts the mining rate. Each active member can increase the rate by up to 20% of the base rate, with a maximum of five members contributing.

• Inviting new members: Expanding the network by inviting others to join Pi Network not only grows the community but also increases the inviter’s mining rate. Each new member who actively mines adds a bonus of 25% of the base rate to the inviter’s earnings.

• Engaging with Pi apps: Utilizing DApps within the Pi ecosystem contributes to network utility and can further enhance mining rewards.

Pi Network Mainnet Launch

The Pi token was in the enclosed mainnet phase until today.

This means that you weren’t able to sell or actually do anything with your tokens.

But, today the highly anticipated open mainnet launch finally happened, and here is how things are going so far:

• The price plummeted by 42% in the first 6 hours of the launch, due to high selling pressure.

• The token reached over $651M trading volume in the first 6 hours of the launch!

A Controversial Story Behind Pi IOUs…

Before today, you were able to “trade” Pi in IOUs.

This is I Owe You system where instead of purchasing the real Pi coin, you were betting on its future value - essentially making a contractual agreement with the exchange.

Here is how this works:

• An exchange (e.g., XT.com, BitMart) issues Pi IOUs, meaning they promise to deliver actual Pi Coins once the mainnet is live.

• When you buy a Pi IOU at, say, $50, you are essentially betting that when real Pi Coins become available, the price will be equal to or higher than $50.

• However, because Pi Coins were not yet available, there was no guarantee the IOU price would match the real price at launch.

What were you actually risking by buying Pi IOUs?

• Price Volatility → If the actual Pi Coin launches at a much lower price than what you paid for the IOU, you lose money.

• Liquidity Issues → Some exchanges offering Pi IOUs were not well-known, so selling or withdrawing profits was difficult.

• Exchange Risk → The exchange controls whether you even get real Pi Coins after launch. If they refuse to honor the IOU, you could be left with nothing.

• Market Manipulation → Since IOUs weren’t tied to actual Pi Coins, whales and exchanges could artificially inflate prices, leading to unrealistic expectations.

Now that the Pi coin has actually launched, Pi IOUs don’t matter anymore because they were merely speculative instruments that represented a future promise to exchange for real Pi tokens. With the actual tokens now in circulation, IOUs no longer hold any value or function in the market.

However, they were a big factor in speculating and “predictions” around the Pi price, where people believed the price would reach over $100 on launch.

Before the Open Mainnet, IOUs were trading between $60–$70, but when real Pi launched, its price was only $1.50–$1.90.

This massive drop happened because:

• There were very few IOUs, and demand was artificially high.

• The real Pi Coins had not yet entered the market, so speculation drove up prices.

• Some people falsely believed IOU prices were an accurate indicator of real Pi value.

The Reality Check

• Many who bought Pi IOUs at $60–$70 suffered huge losses once Pi Coin launched at a much lower price.

• Exchanges that sold IOUs made money, but traders who expected high prices lost.

This is why Pi IOUs are a bit controversial—they created false price expectations and, for many, resulted in huge losses when reality hit.

What is the Future of the Pi Token?

So, what happens now?

All of the price predictions made based on Pi IOUs are pretty much worthless right now.

So, will the price continue to go in a downtrend or will it spike up and reach the price tag of over $100 as some speculated?

To be honest, it’s hard to tell.

If Pi Network builds a strong ecosystem with real use cases, demand could push prices up.

But without widespread adoption, it risks fading into obscurity like many overhyped projects before it.

For now, Pi remains a speculative bet.

Only time will tell.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.