Key Insights:
You can sell Pi via the IOU method which uses custom derivative contracts.
Alternatively, you can also use Peer to Peer trading after the mainnet launch.
Pi Coin will launch its Open Network on 20 February 2025.
Exchange listings are expected soon after the launch.
The Pi Network has been in a testnet phase since 2019, almost 6 years ago. However, this month this is going to launch its mainnet on 20 February 2025.
The next obvious step for Pi Network would be to take its token and list it on various centralized and decentralized exchanges.
Expecting a sell-off after its launch, several Pi Coin users want to redeem their sales before the crypto gets listed on various centralized and decentralized exchanges.
We have brought you two unique methods to sell your Pi Coins, one before the mainnet launch and another after the launch but before exchange listings.
I Owe You (IOU) is used to refer to a customized derivative contract where two individuals, a buyer, and a seller use a decentralized smart contract to transfer crypto to each other at a later date at a pre-determined price. It is similar in function to a derivative contract on any futures trading platform.
Some customized IOU platforms include Uiscrow and Maticz (names given for demonstration only, not a piece of trading advice). Such platforms do the entire contract without transferring any actual crypto between the buyer and seller, i.e., the same way as a derivative contract.
Two parties willing to exchange an asset at a certain later date enter into an escrow contract by contributing their deposit money. This money is usually in the form of a cryptocurrency, mostly stablecoins.
Let us understand this via an example of Pi Coin. Assume the current market price of Pi Coin is around $85. Let us assume two buyers Elon Musk and Donald Trump decide to enter into a trade. Elon has 1 Pi Coin on the Pi App and wishes it to sell at $85 (because he thinks it will crash) and Trump wants to buy that Pi Coin for $85 (because he thinks its price will rise).
Now, in the usual case, the smart contract will hold the Pi Coin and the stablecoin, to transfer Pi to Trump and the stablecoins to Elon. However, Pi is not launched yet, which means that no transfer can take place at least till the mainnet is open for business.
Both of them pay $20 as collateral on 13 Feb 2025 (depending upon the volatility of the coin) and enter the trade.
If on 15 Feb 2025, i.e., 5 days before the mainnet launch, Elon sees the value of Pi Coin to rise to $86, he has to pay Trump $1 for that increase. Note Elon has sold the rights of the Pi Coin to Trump on 13 February. Similarly, if the value of Pi Coin drops to $84, Trump has to pay an extra $1 to Elon.
If both of them agree, they can cancel the trade at any point before launch i.e., the contract expiry date.
Peer-to-Peer sales will only be unlocked after the mainnet launch on 20 February but will be available for peer-to-peer transfers before the token listing. Usually, there is a few days gap between the two.
In peer-to-peer sales, a user will have to search for a peer on social media or the community pages of top crypto platforms like Binance, CoinMarketCap, or any other page. Beware, finding a suitable buyer or seller remains always a challenge and equally risky on such platforms.
Once the buyer and seller agree to transfer Pi Coins for payment (usually stablecoins), both of them can execute the transfer. It is generally considered safer if P2P transactions take place via an escrow.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.