PI Token Experiences Sharp Decline
After reaching an all-time high of $2.99 on Feb. 26, Pi Network’s native token PI has taken a significant hit, plummeting roughly 73% in less than a month. As of the latest data, PI is now trading at $0.81, edging closer to its launch price of $0.70 on Feb. 20.
Underperformance Compared to Market Averages
- Altcoins corrected 6.9% on average during the same period, highlighting PI’s drastic drawdown.
- Token design allowing users to mint tokens and increase supply through network interactions has added pressure on PI.
Token Unlock Pressures
A report from Keyrock in December 2024 revealed that over 90% of token unlocks contribute to negative price pressure, with effects taking up to 30 days to materialize. PiScan data shows that the network will issue over 102 million PI tokens in the next 30 days, averaging 3.4 million daily, which is over 1% of the circulating supply.
Supply Pressure
At the current price of $0.81, the dollar-denominated supply pressure on PI amounts to $82.6 million, translating to about $2.7 million daily. Pi Network is expected to account for 4% of the $2 billion in token unlocks scheduled for April.
Controversies Surrounding PI
- Concerns have been raised about Pi Network resembling a multi-level marketing scheme.
- Delayed mainnet launch and limited token utility details have raised doubts about the project’s viability.
- Allegations of fraudulent activities, targeting vulnerable populations, and harvesting user data have been made against Pi Network.
Response to Allegations
In response to the allegations, Pi Network issued a public statement on Feb. 22, denying any involvement in fraudulent activities. The team clarified that unauthorized third parties falsely associated with Pi were the subject of the Chinese police report, and no authorities had directly contacted Pi Network regarding the matter.
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