Pi Coin Plummets 65% Post-Mainnet Launch: What Went Wrong

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Pi Coin, the native cryptocurrency of the Pi Network, experienced a staggering 65% decline shortly after its much-anticipated mainnet launch on February 20, 2025.

This dramatic drop has raised numerous questions regarding the project’s stability, liquidity, and overall credibility in the competitive cryptocurrency landscape.

The Mainnet Launch: A Double-Edged Sword

The Pi Network’s transition to an open mainnet was intended to allow users to trade their tokens on centralized exchanges for the first time. Initially, the PI token opened at approximately $1.84 but quickly fell to around $0.64 within hours of trading.

This volatility was unexpected, especially given the hype surrounding the launch and the network’s claims of having over 60 million users.

However, blockchain data indicates that only about 9.1 million of these users are active, raising concerns about genuine user engagement and demand for the token.

Key Factors Behind the Price Collapse

Several factors contributed to this sharp decline:

• Profit-Taking by Early Miners: Many early adopters who mined PI tokens for free seized the opportunity to cash out as soon as trading began. This mass sell-off created significant downward pressure on the price, as traders sought to liquidate their holdings quickly to avoid potential losses.

• Liquidity Issues: The liquidity of PI has been a major concern since its launch. Reports indicate that even large exchanges struggled to manage trading volume effectively. For instance, OKX reported a market depth of only $33,000 to $60,000, meaning that substantial trades could lead to drastic price fluctuations. This lack of liquidity has made it challenging for traders to execute large transactions without impacting the market negatively.

• Negative Sentiment and Accusations: The CEO of Bybit publicly criticized the Pi Network, labeling it a scam that targets vulnerable populations, particularly the elderly. He referenced warnings from Chinese authorities that had previously labeled the project as dubious. Such statements have further eroded investor confidence and fueled skepticism about the project’s legitimacy.

• Absence from Major Exchanges: While PI was listed on several exchanges like OKX and Bitget, its absence from top-tier platforms such as Binance limited its visibility and potential trading activity. This lack of access likely hindered broader market participation and contributed to price instability.

The Aftermath: What Lies Ahead for Pi Coin?

The fallout from this crash has led to a significant loss in market capitalization, estimated at around $6 billion within just two days post-launch. Despite this setback, some analysts remain cautiously optimistic about Pi’s future.

They argue that as supply from early miners diminishes and if real demand develops, there could be a potential rebound in price.

However, for now, skepticism remains high due to unresolved liquidity concerns and ongoing scrutiny regarding the project’s operational transparency and decentralization claims.

As Pi Network continues to navigate these challenges, its ability to regain investor trust and stabilize its token price will be critical in determining its long-term viability in the cryptocurrency market.

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