Date: Fri, February 21, 2025 | 08:54 AM GMT
After the much-anticipated mainnet launch of Pi Network (PI) yesterday, the cryptocurrency has faced a sharp decline of over 60% in the past 24 hours.
Initially, PI showed strong momentum, trading between $1.40 and $1.60. However, several factors have contributed to its price drop, with the coin now trading at $0.6499, according to CoinMarketCap.
Source: Coinmarketcap
Key Factors Behind the Decline
The following factors have directly contributed to PI’s sharp decline in price:
1. Sell-Off by Miners
One of the primary reasons for PI’s sharp decline is the massive sell-off by early adopters, known as “Pioneers.” These miners had been accumulating PI for years before its official launch, and many took this opportunity to book profits, leading to increased selling pressure.
2. Bybit CEO’s Statements
Another major factor that added negativity to the market was a recent tweet from Bybit CEO Ben Zhou. He publicly labeled Pi Network as a scam and confirmed that Bybit would not list the token.
Source: @benbybit (X)
His remarks were further backed by reports from the Hengyang Public Security Bureau in China, which had previously issued warnings about Pi Network in 2023. The bureau raised concerns about potential personal data leaks and financial risks, especially for elderly investors.
Although Pi Network denied any involvement in data leaks, attributing the incident to a third-party provider, Yoti, the controversy surrounding the project has impacted investor confidence.
Future Prospects
Despite the recent downturn, there are still positive developments surrounding Pi Network. The project boasts a massive user base of 60 million, with 19 million users already completing KYC verification. Additionally, Pi Network is actively inviting businesses to join its ecosystem, offering them access to a large and engaged community. Thousands of merchants and customers are already transacting with PI across 155 countries, indicating growing adoption.
Source: minepi
If Pi Network manages to secure major partnerships with businesses and expands its real-world use cases, PI Coin could see a significant recovery in the future.
While analysts expected a sell-off due to early profit-taking by miners, the project’s long-term vision remains promising. If Pi Network successfully builds its ecosystem and strengthens trust among investors, the coin’s value may find stability and even see further growth ahead.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
