Pi started mentioning long trades on the 24th, and we saw the price surge to 0.2.
On the 26th, it was mentioned that the 28th and 29th are crucial times for going long.
After the long trades ended, a liquidity gap was created.
On the 30th, with no more long positions, the price was deliberately suppressed, profiting from the spread between contracts and spot.
However, there's no need to doubt this; it's not some PCT scam sell-off. The information only indicates that traders exited after the short-term speculation ended.
(The following is an explanation to help understand the simulation:)
Moreover, this individual is a technical analyst who uses low liquidity exchanges to influence price changes on high liquidity exchanges. By withdrawing liquidity from low liquidity areas, selling just 10,000 Pi allows them to short on other exchanges, altering the liquidity of contracts and affecting the spot liquidity, thereby creating a low execution price in other exchanges.
This is due to the high buy orders in the market being too aggressive, creating an opportunity for contract spread trading. This isn't called suppression; it's simply a matter of exploiting the price spread: going short > pressuring the price > closing the short > ending the speculation. Thus, this price spread was taken advantage of, and it has nothing to do with the PI market dynamics.
The demand fundamentals for prices in the PCT system remain unchanged, and this speculative wave actually helped eliminate obstacles faced by PI in its growth due to speculative shorting.
Therefore, the wallet transfers that occurred yesterday in PCT indicate that this isn't a PCT sell-off but a result of market liquidity chips creating a gap in the contract versus spot price spread. Hence, urgently borrowing liquidity to prevent speculators on contracts from causing a market crash.
This is mentioned in the PI white paper, so it can be fully understood that PI's intent in setting up 10,000 wallets holding 2 million PI each aligns with my initial understanding. The design of 100 billion PI is not about releasing all at once; rather, 51% is meant to resist malicious market attacks requiring emergency liquidity.
This entire wave demonstrates how the PI systemically detects and fills gaps effectively. Without transferring 10 million, speculators with 20,000 PI could have driven the price down to 0.001.
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