This Week in Crypto: Pi Network Issues, Rumored Commodity XRP, Declining Binance and Coinbase Volume, and More
The crypto market has been filled with significant events this week, from the controversy surrounding Pi Network’s Mainnet Migration to the growing attention on Bitcoin’s role in the underground market. Here’s a look at some of the major events that have and continue to impact the industry.
Pi Network Controversy Over Mainnet Migration
Pi Network has faced criticism from the Pioneers community as its Mainnet migration has been deemed opaque and difficult for users to transfer Pi. Many have reported that despite completing the KYC process, a large portion of their balances remain unverified and there has been no response from support.
One user complained: "The whole process has been disappointing. Almost 80% of my balance is still unverified despite completing all the KYC requirements. No one has contacted me even though I submitted a support request weeks ago."
The failure to meet the migration deadline and the KYC issues have raised concerns about the potential for Pi's price to fall once unrestricted trading begins. These issues have also raised concerns about centralization as the development team holds 82.8 billion Pi, casting doubt on the decentralization of the ecosystem.
Bitcoin Moves From Dark Web Drug Market
A Bitcoin wallet that has been dormant for nine years has suddenly become active again, moving over $77.5 million in BTC. The wallet is linked to Nucleus Marketplace, a darknet drug marketplace that has been shut down since 2016.
Many are concerned that the appearance of transactions like this could signal the continuation of illicit financial activity. The question is whether law enforcement is tracking the funds and what the likelihood of further illicit activity is.
SEC Rumored to Classify XRP as a Commodity
This week, rumors swirled that the SEC might reclassify XRP as a commodity instead of a security, which could have a major impact on Ripple’s legal battles with the SEC. Ripple recently successfully argued that selling XRP on the secondary market does not constitute a securities transaction.
This classification, if it happens, would put XRP under the jurisdiction of the CFTC, rather than the SEC, and could create a more comfortable regulatory environment for Ripple. Additionally, if XRP is recognized as a commodity, it could pave the way for the approval of XRP-related ETFs in the US.
Trump's Crypto Summit Disappoints
President Donald Trump hosted a crypto summit at the White House, but the event failed to deliver the expected results. Many criticized the summit for only making general statements and not providing a clear policy direction on cryptocurrencies, including stablecoins, CBDCs, or the future of Bitcoin and Ethereum in the US.
Many investors and industry experts were disappointed by the lack of concrete commitments from the Trump administration to the crypto industry.
Binance and Coinbase Traffic Plunge
Meanwhile, two major exchanges, Binance and Coinbase, have seen a significant drop in traffic, down nearly 30% over the past week. Trading volumes have also dropped accordingly, reflecting the reluctance of retail investors.
Many analysts attribute this to low volatility, reduced speculative activity, and regulatory concerns. The lack of growth catalysts, such as Bitcoin ETFs or institutional inflows, has kept many traders on the sidelines.
These factors have shaped a memorable but challenging week for the cryptocurrency market, as the industry continues to experience major volatility and awaits major regulatory events in the future.