Kraken Launches Perpetual Futures Contracts for Pi Network’s Native Token, PI

Kraken has launched perpetual futures contracts for Pi Network’s native token, PI, allowing traders to take long or short positions with up to 20x leverage.

Kraken, the cryptocurrency exchange, has launched perpetual futures contracts for Pi Network's native token, PI.

The move introduces a novel way for traders to engage with PI, offering the ability to take leveraged long or short positions on the token, commonly used in technical analysis to identify the direction of a trending market.

Perpetual futures are derivative contracts with no expiration date. Traders can open positions that track the price of PI and settle profits or losses based on price movements over time.

On Kraken Pro, users can access these contracts with over 40 collateral options and across more than 360 markets. This flexibility allows both hedging and speculative strategies. Traders bullish on Pi Network can go long, while skeptics can short the token—betting that its price will fall.

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These futures contracts offer leverage of up to 20x, amplifying gains or losses. With 20x leverage, small price swings can lead to outsized gains or losses.

Meanwhile, after a brief rally to $1.57 earlier this month, PI has dropped 10% this week. Despite the ongoing bullish cycle in the market, the altcoin has shown extreme volatility and underperformed expectations.

The listing introduces more liquidity into the PI market. Greater trading activity could reduce volatility in the long term. However, in the short term, leverage may amplify price swings.

There are already concerns over the project, with a high concentration of nodes in Vietnam sparking doubts about the project's stability. Vietnam's tightening crypto laws add further pressure.

With futures now in play, bearish traders may open leveraged shorts, potentially accelerating PI's downward momentum.

Moreover, increased volatility could trigger liquidations on both sides, causing sudden price spikes or crashes.

While the futures listing opens new opportunities, it also raises the stakes. Traders should monitor funding rates and open interest to gauge the strength of directional bets.

Overall, Kraken's move brings new visibility to Pi Network. But for now, there is a lot of skepticism regarding the altcoin's direction in the spot market.