3 weeks ago
Kraken has introduced perpetual futures contracts for Pi Network’s autochthonal token, PI, allowing traders to speculate connected its terms with up to 20x leverage, according to a May 23 announcement.
The listing marks the token’s archetypal quality connected a large derivatives platform. However, it failed to make affirmative momentum for the token’s price.
Based connected CryptoSlate data, Pi was trading astatine $0.77 arsenic of property time, down 5.33% implicit the past 24 hours.
It allows investors to agelong oregon abbreviated PI without holding the plus directly, offering vulnerability to its terms movements amid ongoing questions surrounding the project’s decentralization and marketplace performance.
First Pi derivative
While PI has yet to unafraid listings connected starring spot exchanges similar Coinbase oregon Binance, its derivatives debut signals increasing organization involvement successful the network.
The perpetual contracts volition beryllium disposable connected Kraken Pro and connection entree to implicit 360 trading markets with much than 40 collateral options.
Perpetual futures disagree from accepted contracts by having nary expiration. This enables traders to support their positions indefinitely, taxable to backing complaint payments.
The summation of leveraged futures trading whitethorn summation liquidity but could besides intensify terms swings and volatility successful the short-term, thing the web has been struggling with since its launch.
Liquidations connected some agelong and abbreviated positions could pb to unpredictable volatility successful the adjacent term.
Volatility risks amid marketplace uncertainty
The token’s short-term trajectory remains volatile. After a little rally earlier successful May that pushed PI above $1.50, the terms has since slipped astir 50%, underperforming broader marketplace trends.
Meanwhile, concerns implicit the project’s token distribution, astir 60% of PI remains controlled by the halfway team, person besides contributed to marketplace hesitancy.
The dense attraction of validator nodes successful Vietnam, a portion facing tighter crypto regulations, further compounds these concerns. The upcoming rules are expected to beryllium stringent and could airs operational risks for the network, hindering its broader decentralization goals.
While the Kraken listing brings accrued visibility to Pi Network, it besides introduces a much analyzable trading environment. In a script wherever bearish sentiment is rising, abbreviated sellers whitethorn usage the caller instruments to further unit the market, causing unexpected spikes successful volatility.
The station Pi Network token makes derivatives debut connected Kraken with perpetual futures offering 20x leverage appeared archetypal connected CryptoSlate.
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