Pi Network Makes Derivatives Debut: PI Perpetual Futures Now Trading on Major Exchange

Kraken has officially launched perpetual futures contracts for PI, the native token of Pi Network. This marks the first time that PI is available on a major derivatives exchange, even though it remains absent from leading spot exchanges such as Binance and Coinbase. 

The listing opens a new chapter for the project and introduces a way for traders to speculate on the price of PI without owning the asset itself.

This debut comes amid growing curiosity and debate over Pi Network's long-term value and token utility. As the project continues its journey toward full decentralization, the availability of perpetual futures may influence how the broader market views its potential.

What Are Pi Network Perpetual Futures?

Perpetual futures are a type of derivative contract that allows traders to take positions on the future price of an asset, in this case, the Pi coin, without an expiration date. 

The contracts launched on Kraken Pro enable users to go long if they expect the price to rise or short if they believe it will fall.

These contracts offer up to 20x leverage, allowing traders to amplify their positions. However, leverage also increases risk, as small price changes can lead to significant gains or losses. 

For Pi Network supporters, this development represents increased accessibility and trading diversity. But it also brings additional risks and market complexity.

Read also: $100 Million Fund from Pi Network Ventures to Power the Next Wave of Blockchain-Integrated Startups

How the Listing Affects PI Price and Liquidity

Although the listing of perpetual futures may boost market visibility and attract new traders, it does not necessarily reflect broader token adoption or price stability. 

In fact, PI recently dropped by 10 percent despite a brief rally to $1.57 earlier this month. This underperformance occurred during a generally bullish market trend, suggesting that traders remain cautious.

The addition of derivatives could introduce more liquidity into the PI market, which might help reduce volatility in the long term. However, in the short term, leveraged trading often leads to price swings. Traders taking opposing bets can create sudden moves in price when positions are liquidated.

Moreover, concerns remain about centralization, with 60 percent of PI’s total supply still under the control of the Pi Core Team. This concentration continues to raise questions among traders and observers about how decentralized the project truly is.

Geographic Risks and Regulatory Uncertainty

Another source of concern lies in the geographic distribution of PI nodes. Reports from BeIn Crypto suggest that a large number of Pi Network nodes are concentrated in Vietnam, a country that has been tightening its cryptocurrency regulations. 

This concentration could present risks to the network’s overall stability and raises questions about its resilience under changing legal conditions.

With Kraken’s listing, these concerns take on greater significance. Bearish traders may use the perpetual futures market to bet against PI, especially given the current sentiment and regulatory ambiguity. This could accelerate downward momentum, depending on the volume and leverage used.

Read also: Pi Network New Update, Bring the Bullish Momentum?

What This Means for Pi Network’s Future

While Pi Network has grown to over 60 million users and built a strong community through mobile mining and app development, the availability of perpetual futures places it under a new kind of scrutiny. Traders will now be able to express their confidence—or skepticism—through leveraged positions.

The move by Kraken could be seen as a sign of growing interest in the token. Still, the long-term impact will depend on whether the Pi Core Team can deliver more clarity around token utility, decentralization, and exchange listings.

Until PI becomes available on major spot markets, the futures market may serve as a testing ground for sentiment and price discovery. 

However, the increased risk from leverage means that investors should proceed with caution and monitor key indicators like funding rates and open interest.

Find other interesting articles on Bitrue blog! You can also directly buy selected assets on Bitrue by registering here! 

Frequently Asked Questions (FAQ)

Q: Is PI worth real money? 

A: Yes, Pi has a live price and a market capitalization, showing it has real-world value.

Q: Can Pi reach $100? 

A: It's possible for Pi to rapidly increase towards $70-$100 if many new users join and demand stays high, especially since the amount of Pi available for trading is currently low.

Q: Can I sell Pi for real money? 

A: Yes, you can sell Pi Coin on a few centralized exchanges, usually by trading it for USDT.

Q: Can Pi coin make me rich? 

A: No, earning significant wealth from Pi is considered very difficult, and expectations of a life-changing windfall are unrealistic.

Q: Is Pi KYC safe? 

A: The KYC process for Pi Network, which was initially handled by a third party and relies on ads for revenue, has raised concerns about user data privacy.