The much-anticipated mainnet launch of Pi Network has ignited a trading frenzy, with volumes exceeding $1.3 billion within the first few hours. However, the excitement was short-lived as Pi Coin (PI) witnessed a dramatic price collapse, plunging 60% from $2 to $0.69, wiping out early investor gains.
Classic Pump-and-Dump Scenario
Early investors seized the opportunity to capitalize on the launch, swiftly selling their holdings in what appears to be a textbook pump-and-dump scheme. The mass sell-off saw PI’s price nosedive from $2 to $0.66 within the first 24 hours, leaving many long-term supporters disillusioned.
Despite the sharp decline, Pi Network still commands a substantial market capitalization of $4.25 billion. With over 60 million registered users and 10 million already migrated to the mainnet, the project boasts a robust community base, but price instability remains a pressing concern.
Token Unlock Mechanism
Following the mainnet activation, only 1 billion of the total 9.7 billion PI tokens were made available for trading. The remaining tokens are locked in user wallets and will be gradually released over time, potentially influencing future price dynamics.
Exchange Listings and Future Prospects
Major exchanges have taken note of Pi Network’s surge in activity. OKX and Bitget have already listed Pi Coin, while Binance and Coinbase are reportedly in discussions to integrate the token. These listings could inject much-needed liquidity and restore investor confidence, providing Pi Coin with a more stable trading environment.
Long-term Pi supporters are expressing frustration over the sudden price drop. Crypto analyst Wood LightYear voiced his disappointment, emphasizing that early miners dedicated years to accumulating Pi, only for newer investors to acquire the token at a significantly lower cost.
Also Read: Pi Network Warns Users Against Fraudulent Pi Coin Listings on DEXs – Here’s What You Need to Know
With extreme price volatility defining its early market performance, Pi Coin presents a high-risk investment opportunity. Analysts urge caution, advising traders to look for clear signs of a market reversal before considering any fresh positions. The coming weeks will determine whether Pi Network can stabilize or remain a speculative asset in the ever-evolving crypto landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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