Pi Network’s open mainnet launch causes short-lived rally for token before price crashes over 50%

The long-awaited launch of Pi Community’s Open Mainnet triggered sharp worth actions for its native token, Pi (PI), on Feb. 20, as early enthusiasm gave method to a swift sell-off.

Pi Community, which permits customers to mine crypto by way of a cellular app with out energy-intensive {hardware}, transitioned from a closed beta system to an open blockchain, enabling transactions past its ecosystem.

The shift is predicted to increase the token’s real-world use and enhance its accessibility on exterior platforms. Pi Community’s improvement staff stated in an announcement:

“The transition to Open Community will allow Pi to attach with exterior networks on the Mainnet blockchain, permitting customers to conduct transactions outdoors the Pi ecosystem.”

The improve additionally paves the best way for potential trade listings and integration with decentralized functions. Nonetheless, the street stays fraught with challenges because of uncertainty across the venture’s legality.

Crash after surge

Following the announcement, Pi surged 45% inside an hour, reaching a excessive of $2.10, whereas its buying and selling quantity spiked over 1,700% as hypothesis across the launch fueled a shopping for frenzy.

Nonetheless, the rally was short-lived. Inside hours, Pi plunged greater than 52% to a low of $1.01, wiping out features from earlier within the day. The token’s market capitalization fell to $7.02 billion, elevating considerations about long-term worth stability.

With a complete provide of 9.7 billion tokens, Pi’s totally diluted valuation (FDV) presently stands at roughly $83.07 billion.

Analysts warned that future token releases may introduce further downward stress if demand fails to maintain tempo with provide.

Uncertainty stays

Since its inception in 2019, Pi Community has attracted tens of tens of millions of customers, positioning itself as a mobile-friendly different to conventional cryptocurrencies. Supporters imagine the Open Community launch marks a significant step towards broader adoption by enabling real-world transactions.

Regardless of the optimism, uncertainty stays. Critics level to unclear tokenomics, potential regulatory hurdles, and the absence of confirmed trade listings as challenges that would restrict Pi’s long-term viability.

In the meantime, its historical past of authorized and regulatory troubles has additionally raised concern within the trade, with a number of main exchanges denying its itemizing software. Binance ultimately let the group vote on the matter, which resulted in an 85% favorable end result for Pi.

Nonetheless, the group assist doesn’t alleviate the uncertainty across the venture, which was labelled a rip-off by legislation authorities as not too long ago as 2023.