Pi Coin Crashes Nearly 80%: Is Pi Network Collapsing Under Its Own Weight?
By Ankush Jain
April 2, 2025 at 4:18 PM UTC
Edited by Anna Akopian
In the past month, the cryptocurrency community has witnessed a shocking downturn as Pi Coin, the native currency of the Pi Network, plummeted by 78%. The sudden decline raises questions about the sustainability and future of the Pi Network just weeks after exciting announcements about its mainnet launch.
From Top 10 to Tumbling
Pi Network made headlines in February 2025 when it achieved significant traction after its much-anticipated mainnet launch on February 20. The token surged to an all-time high of $2.98 on February 26, even entering the top 10 cryptocurrencies by market capitalization. However, just weeks later, the story has soured. As of April 2, Pi Coin trades at approximately $0.66, marking a staggering loss of nearly $14.5 billion in market value, which has plummeted from nearly $20 billion to about $4.56 billion.
The situation is exacerbated by the upcoming release of over 124 million Pi tokens in April alone, with monthly unlocks projected to peak at 233 million by July. This projected influx indicates a potential market saturation that could further suppress the token’s value. With a current circulating supply of 6.7 billion and a total cap aiming eventually for 100 billion tokens, the inflationary nature of Pi Coin is becoming a growing concern among investors.
Despite some exchange listings on platforms like OKX, Bitget, and Gate.io, major exchanges such as Binance, Coinbase, and Kraken have yet to list Pi Coin, further limiting trading opportunities. Comments from industry leaders, including Bybit’s CEO, who labeled Pi as a “scam,” contribute to the hesitancy surrounding the project, although the Pi Core Team has categorically denied such allegations.
Glitches, Delays, and Dead Ends
The steep price drop has been attributed to operational challenges primarily revolving around the mandatory Know Your Customer (KYC) verification process. This crucial step has led to a chaotic experience for more than 60 million users, as migrating mined Pi tokens to the mainnet has become fraught with delays. Reports suggest that only about 14 million users have successfully navigated this migration process, indicating severe capacity and technical issues.
The Pi Core Team, in an effort to manage the KYC process, switched from the third-party provider Yoti to its own system. However, this transition has introduced glitches, resulting in ambiguous "Tentative Approval" statuses that have left many in limbo. Frustration among users has been vocal on social media platforms like X, where stories of lost tokens and unfulfilled promises of access have instigated a sense of panic and erosion of trust.
The silence from the Pi Core Team regarding key issues such as validator incentives and dApp development has stoked speculation and community unrest. Users are expressing skepticism about whether the project can stabilize itself amidst operational disarray.
Activity Tells a Different Story
Amidst these troubling developments, Pi Network attempted to showcase its practical use case with the PiFest event, held from March 14 to March 21. Billed as a merchant initiative aimed at fostering everyday usage of Pi, over 125,000 sellers registered, with 58,000 actively participating. However, discrepancies have surfaced as on-chain data indicates that payment volumes did not see significant upticks, revealing users’ reluctance to spend their tokens amid uncertainties.
Concerns extend beyond mere token usage. Pi Network initially promised a suite of decentralized applications (dApps) to support various transactions and broaden the ecosystem, but many existing dApps are limited in their offerings compared to competitors. Additionally, the anticipated integration with Telegram’s crypto wallet has not yet translated into real user engagement, another factor contributing to the growing apprehension.
Conclusion: A Make-or-Break Moment Ahead
As the Pi Network grapples with KYC issues and market challenges, the next few weeks will be critical in determining the project’s fate. With over 1.53 billion new tokens set to enter circulation this year and lingering doubts about the lack of transparency from the team, the cryptocurrency community will be watching closely to see if Pi Network can restore user trust and navigate through this turbulent chapter. Without effective solutions to operational challenges, the future of Pi Coin remains uncertain as it contends with a rapidly evolving and highly competitive landscape.
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