Kraken has introduced eternal futures contracts for the native token of PI Network, PI, so that traders can speculate about the price with a maximum of 20x leverage, according to a 23 May announcement.
The offer marks the first appearance of token on a large derivatives platform. However, it could not create a positive momentum for the price of token.
Based on crypto slat data, PI acted from the moment of the press of $ 0.77, a decrease of 5.33% during the last 24 hours.
It enables investors to keep long or short PI directly directly directly, so that the price movements are exposed to its price movements in the midst of current questions about the decentralization and the market performance of the project.
First Pi -Defined
Although PI has not yet been obtained over leading spot fairs such as Coinbase of Binance, the debut of the derivatives indicates a growing institutional interest in the network.
The perpetual contracts will be available on Kraken Pro and offer access to more than 360 trade markets with more than 40 colland options.
Perpetual futures differ from traditional contracts by not having a expiry date. This enables traders to maintain their positions indefinitely, subject to financing interest.
The addition of livered futures trade can increase liquidity, but can also intensify the price fluctuations and volatility in the short term, something with which the network has been struggling since the launch.
Liquidations in both long and short positions can lead to unpredictable volatility in the short term.
Volatility risks in the middle of market insecurity
The short -term trajectory of the token remains volatile. After a short rally earlier in May that PI pushed over $ 1.50, the price has since gone out about 50%, leaving wider market trends behind.
In the meantime, the concern about the token distribution of the project have checked around 60% of the PI by the core team, also contributed to the hesitation of the market.
The heavy concentration of validator nodes in Vietnam, a region that is confronted with tighter crypto instructions, further worsens these concerns. The coming rules are expected to be strict and may form operational risks for the network, which hinder the broader decentralization goals.
Although the Kraken mention offers an increased visibility of PI Network, it also introduces a more complex trade environment. In a scenario where Beerarish sentiment rises, short sellers can use the new instruments to put pressure on the market, causing unexpected spikes in volatility.