Kraken has introduced perpetual futures contracts for PI, the native token of Pi Network. This allows traders to speculate on the price of PI using up to 20x leverage, whether they believe it will rise (going long) or fall (going short). This marks the first time PI is available on a major derivatives platform, even though it is not listed on top exchanges like Binance or Coinbase.

Perpetual futures are contracts that do not expire, allowing traders on Kraken Pro to open positions based on the price movements of PI, settling profits or losses over time. Users have access to these contracts with a wide range of collateral options across various markets, enabling hedging and speculative strategies.

The use of 20x leverage means that small price changes can result in significant gains or losses. Despite a recent price drop of 10%, there has been extreme volatility in PI after a brief rally earlier in the month. The futures listing on Kraken could impact PI's price by bringing in more liquidity and potentially reducing long-term volatility, although short-term leverage might amplify price fluctuations.

Market sentiment toward PI remains uncertain due to concerns about centralization and doubts surrounding the project's stability, especially with Vietnam's crypto laws tightening. The listing of futures opens up new trading opportunities but also increases risk, as leveraged shorts could hasten downward price movements. Traders should closely monitor funding rates and open interest to assess market direction.

Overall, Kraken's move raises awareness of Pi Network but also underscores the skepticism surrounding the altcoin's future trajectory in the traditional spot market.