Pi Coin ‘Will Never Become Stablecoin,’ Says Expert
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The statement– ‘Pi coin is similar to a stablecoin’ is a rumour spread via various news sources and social media to confuse people and lure them into scams. This got more popular after the rumors claimed that Pi is pegged to a specific asset like the US dollar. Some sources even claimed that Pi coin holds a fixed value of $314,159.
Experts finally drew a line, settling the rumours, and concluded that Pi coin is not a stablecoin.
Is Pi a Stablecoin?
Various crypto experts and software developers have put forward their arguments on the matter, explaining that the Pi is not a stablecoin. In a recent post on X, a crypto expert, Kosasi Nakamoto, claimed that “Pi is not and will never become a stablecoin.” He also rejected the claim that Pi will give $314k worth of money, while asserting that ‘one Pi equals one Pi.’
Additionally, Nakamoto also quoted Nicolas Kokkalis, one of the founders of Pi Network, stating, “PI IS WORTH WHAT PIONEERS CONSIDER IT WORTH. ” While stablecoins are pegged to real-world assets (fiat currencies) like the US dollar, Pi coin is the native cryptocurrency of the Pi Network and completely relies on its demand in its ecosystem.
Differences between Pi Coin and Stablecoin
- The most important difference between these two digital assets– Pi coin is a crypto on Pi Network, a blockchain-based project that aims to make digital currency mining accessible to everyone, while stablecoin is designed for price stability.
- Stablecoins like USDT or USDC offer a more reliable store of value and facilitate transactions, while Pi coin is known for its price volatility and relies on community adoption for its value.
- Pi coin lacks clarity and is still under development, while stablecoins provide increased clarity without potential risks of fraud.
- Stablecoin is regulated by the US government via the GENIUS Act, while the Pi network is often considered a scam and faces delisting from exchanges.
Final Thought
As the rapid growth of cryptocurrency has introduced numerous digital currencies, it has become difficult for investors and users to classify them. People often get confused between the various categories of digital assets— cryptocurrencies, stablecoins, altcoins, and native tokens. But it is crucial to understand the difference before investing in any digital currency.