Pi Network token launches derivatives on Kraken, featuring perpetual futures with 20x leverage.

Kraken has launched perpetual futures contracts for the Pi Network’s token, PI, enabling traders to speculate on its value with leverage of up to 20x, as announced on May 23.

This listing represents the token’s inaugural entry into a significant derivatives platform; however, it did not succeed in boosting the token’s market price.

According to available data, Pi was valued at $0.77 at the time of reporting, reflecting a decrease of 5.33% over the last 24 hours.

This feature permits investors to take long or short positions on PI without owning the underlying asset directly, granting them exposure to its price fluctuations despite ongoing uncertainties surrounding the project’s market viability and decentralization.

Despite not yet being featured on major spot exchanges like Coinbase or Binance, the introduction of derivatives indicates increasing institutional interest in the network.

The perpetual contracts will be accessible on Kraken Pro, providing entry to over 360 trading markets with more than 40 options for collateral.

Unlike traditional contracts, perpetual futures have no set expiration date, allowing traders to hold their positions indefinitely, albeit with certain funding rate obligations.

The incorporation of leveraged trading instruments could enhance liquidity, but it might also amplify price volatility in the short term, an issue that the network has been contending with since its inception.

Liquidations on both long and short trades may result in erratic market fluctuations in the near future.

The token’s short-term path is marked by instability. Following a brief surge earlier in May that saw PI exceed $1.50, the price has since dropped nearly 50%, lagging behind broader market trends.

Concerns regarding the distribution of the token, with approximately 60% still held by the core team, have also fueled market skepticism.

The concentration of validator nodes in Vietnam, a region poised to impose stricter cryptocurrency regulations, adds another layer of concern. The anticipated regulations could be stringent, posing operational challenges for the network and undermining its decentralization aspirations.

While the listing on Kraken enhances Pi Network’s visibility, it also complicates the trading landscape. In a market increasingly swayed by negative sentiment, short sellers might leverage these new instruments to apply further pressure, leading to unforeseen volatility spikes.