Pi Network, once a darling of millennial crypto investors, is facing a steep decline. Its native token, PI, surged to an all-time high of $2.99 following the Pi mainnet launch but has since lost nearly half its value. As of now, the coin hovers between $0.80 and $0.83 amid widespread bearish signals.
What’s Driving the Pi Coin Downturn?
1. Mainnet Launch and Initial Volatility
The Pi Network launched its Open Mainnet on February 20, transitioning from a closed ecosystem to full decentralization. While the announcement sparked brief price spikes—reaching $1.96—the token quickly corrected to $0.74 before stabilizing around $1.29.
2. Exchange Listing Challenges
- Binance Rejection: The Pi community faced setbacks when Binance declined to list the token, eroding confidence.
- Increased Supply: Over 10 million new PI tokens entered circulation, diluting value and driving prices down 12%.
3. Transparency Concerns
Critics highlight unclear SuperNode validation rules and centralization risks, as the Pi Network team reportedly controls 83% of the total supply (83 billion out of 100 billion coins).
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FAQs: Addressing Pi Coin Holders’ Concerns
Q1: Why did Pi Coin drop so sharply?
A: The combination of exchange listing rejections, token unlocks, and waning investor confidence triggered the sell-off.
Q2: Will Pi Network recover?
A: Developers promise improvements, including a domain auction (200k bids in one week), but market sentiment remains cautious.
Q3: Is Pi Network truly decentralized?
A: Questions persist due to the team’s large coin holdings and opaque SuperNode policies.
Developer Response: A Glimmer of Hope?
The Pi Network team acknowledges current struggles but emphasizes transparency in their 102 million PI token unlock next month.
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Key Takeaways
- Price Decline: PI fell 47% post-ATH due to supply inflation and lost trust.
- Critical Issues: Centralization concerns and unclear governance rules.
- Future Plans: Domain auctions and token unlocks aim to revitalize the project.
Chart data sourced from TradingView.