In my previous mention regarding my view that the price of pi on exchanges belongs to a privately negotiated contract, I have also seen many people online believing that the GCV pi price of 314159 is a fantasy.
Here are some personal opinions:
Based on my previous article explaining that the pi prices on exchanges are all part of privately negotiated contracts, the on-chain price and the exchange price are completely different matters.
Anyone can freely create a game to privately negotiate the price of pi for trading within the game.
So, why do investors prefer to use the cheaper privately negotiated prices on exchanges rather than believe the on-chain prices right in front of them?
Then the question arises, since investors believe that the privately negotiated prices of pi on exchanges exist and can be traded at those prices, why can't we also consider that GCV's privately negotiated price of 314159 can exist for real trading?
Both exchanges and GCV belong to privately negotiated contract prices, so why the double standard?
And then, constantly being manipulated on exchanges, yet only blaming PCT for not acting. If you choose to gamble at the privately negotiated price on someone else's exchange, who can you blame?
Those who truly care for you, for value, and for the ecosystem have been working hard, yet they end up being criticized everywhere.
There is often no reason for people to lose money; it is usually self-inflicted.
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@dorisyincpa
Since the launch of the Pi wallet, which allows direct purchases of Pi within the wallet, the subsequent trends in relation to foreign exchange conditions are as follows based on the logic mentioned earlier:
The attached chart shows the trends of EUR/USD and PI/USDT.
As mentioned earlier, since the wallet provides fiat liquidity, a decline is observed in the non-USD foreign exchange series, while an increase is related to Pi supply.
Thus, we can see a correlation in this downward trend.
Before 8 PM on the 30th, both reached their low points at the same time.
The timing of the high point at 2 AM and the low point at 3 AM on the 31st is also the same.
Subsequently, as we approach 9 AM on the 31st, the increase in Pi is related to the sum of foreign exchange and Pi buy orders, which is why Pi experienced a rise greater than EUR. This completely aligns with the speculative logic.
Why is it different after 9 AM on the 31st?
Because the increase is due to foreign exchange plus Pi, and since there are more buy orders for Pi, after the buy orders end, it will automatically balance the price based on the liquidity constant formula, thus the comparison from 3 PM to 1 PM is the same.
Conclusion: According to the logic from the previous article, it is very consistent that the decline is related to foreign exchange, while the increase is related to Pi supply, which is foreign exchange plus Pi buy orders.
It should be understood that this means whenever there is positive news about Pi, the trend will be very vigorous.
Some may raise a question: If the upward trend is vigorous, can the downward trend also be vigorous?
To clarify, the downward vigor is when Pi investors sell on the exchange, which reflects the exchange price. As explained in the previous article, the on-chain price is completely independent of the exchange; the exchange price is a private trading market, akin to the price of an in-game item, unrelated to on-chain currency or fiat.
A decline in exchange price will not affect the on-chain price, as there is no sell button on-chain; it is entirely based on a large foreign exchange reserve for liquidity.
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