The Pi Network price dropped in the first two days following the mainnet launch, wiping out $6 billion.
On Saturday, Pi Network was trading at $0.76, less than the $2 mainnet launch price. The price of the Pi coin plummeted for the following four primary reasons.
Pi Network Price Collapse As Scam Allegations Surface
Ben Zhou, the CEO of Bybit, accused the Pi coin of being a scam, a significant factor in the price crash. According to a Chinese report he cited, Pi is a scam that preys on older adults.
Rejecting these charges, Pi Network has insisted that it is a legitimate cryptocurrency project that has been under development for the past six years.
There were two noteworthy aspects of Bybit’s CEO statement. In terms of volume, the company has surpassed Binance to become the second-largest cryptocurrency exchange. Second, it occurred on the same day that its exchange was hacked for $1.4 billion.
Panic Caused Pioneers To Take Dumps
The decision by many pioneers to dump their tokens following the mainnet launch is another factor contributing to the price collapse of the Pi coin.
Most pre-mainnet launch token holders sell them as soon as possible to avoid further losses. Many of these holders have witnessed other tap-to-earn tokens crash without recovery in the Pi Network. As cryptocurrencies fell, the price of the pi coin also dropped.
Furthermore, the continued weakness in the cryptocurrency industry contributed to the acceleration of the Pi Network price crash. After dropping 10% from its peak, the price of bitcoin is still in a correction. Several altcoins, including Ethereum, Cardano, Algorand, and Near, have declined by double digits from their November peak.
The extreme greed zone of 88 on the crypto fear and greed index has reached the neutral point of 40. Newly issued tokens have historically performed well during bull markets.
This idea is comparable to initial public offerings, where many recently listed companies increase in value when stocks perform well.
Will Price Rebound?
Given that the Pi Network coin is currently in a price-discovery phase, it is difficult to forecast whether it will recover this year. More investor demand and the expansion of its ecosystem are likely key factors in its recovery.
At the mainnet launch, Pi Network had roughly 100 apps on its network. Some of these apps’ rapid user growth could serve as a suitable price catalyst.
For instance, in recent years, the Ethereum network has benefited from the support of well-known dApps like Uniswap and AAVE.
