Business Desk 
Feb 23, 2025
Pi Network, a popular cryptocurrency project, saw its price drop sharply after its mainnet launch. The token, which was priced at $2 at launch, fell to $0.76 by Saturday, wiping out over $6 billion in value.
Gadinsider has compiled the key reasons behind the Pi Network price crash.
Pi Network faces scam accusations
One of the primary reasons for the decline is claims that Pi Network is a scam. Bybit CEO Ben Zhou posted a Chinese police warning in 2023, which stated the project targeted elderly investors and leaked personal information.
Pi Network dismissed the allegations, saying it is a genuine crypto project that has taken six years in the making.
Pioneers sell off tokens
Another reason behind the price fall was early investors, or Pioneers, offloading their tokens soon after the mainnet launch.
Numerous pre-launch token holders sell to prevent losses from occurring, out of fear that the same might happen to them as with other tap-to-earn projects which failed after launching, like Notcoin and Hamster Kombat.
Newly launched tokens often crash
Historically, new crypto tokens tend to drop in price after launch. Other high-utility tokens like Wormhole, ZkSync, and EigenLayer experienced similar crashes. Even meme coins, such as Official Trump and Melania tokens, fell by over 80% from their peak prices.
Crypto market decline adds pressure
Pi Network’s struggles were worsened by the overall downturn in the crypto market. Bitcoin fell by 10% from its highest level ever, and other altcoins such as Ethereum, Cardano, and Algorand have followed it with sharp dips.
The crypto fear and greed index has dropped from 88 (extreme greed) to 40 (neutral), making it more difficult for new tokens to take off.
Will Pi Network recover?
Pi Network's future is contingent on investor demand and ecosystem expansion. It debuted with 100 apps on its network, and if they become popular, they can fuel a price recovery, just like Aave and Uniswap did for Ethereum.
