Pi Network Token Surges Then Nosedives After Mainnet Launch

- Pi Network Mainnet Launch, 98% Crash Immediately After Listing - Trading Begins on OKX, Large Sell-Off by Early Miners is Main Cause [Unblock Media] On February 20, Pi Network officially transitioned to an open mainnet, allowing existing miners to transfer their Pi coins to external exchanges. Despite attracting market attention with its trading debut on the major cryptocurrency exchange OKX, the Pi token's price plummeted from $31.50 to $1.10 in just a few hours, marking a severe 98% drop. However, price discrepancies across platforms were significant. In the Binance Web3 Wallet, Pi coin reportedly surged to $357, as noted by Twitter user @mr_cbillionaire, who remarked: Experts attribute the price crash to a massive sell-off by early miners and uncertainties surrounding Pi Network's economic model. Over the last seven years, Pi Network has developed a community of about 35 million members in a closed mainnet environment. Since December 2021, the project has been operating a limited mainnet, and the recent transition to an open mainnet was expected to expand its utility within the blockchain ecosystem. However, there are ongoing doubts regarding the real use cases of Pi coin and the sustainability of its economic model. Unlike typical blockchain projects, Pi Network operates by mining through a mobile app, which diverges from traditional blockchain decentralization principles. The project has faced criticism for its unclear value creation structure for Pi coin. Pi coin has been predominantly usable within the Pi Network, and its delayed exchange listing has led to a lack of practical use cases. These factors have made it difficult for investors to have long-term confidence in Pi coin. Pi Network's economic model relies on mining and referrals by existing users, and a slowdown in new user influx could weaken the network's growth momentum. These elements have eroded investor trust, resulting in a major sell-off and the subsequent sharp decline in Pi token prices following the mainnet launch. Pi Network has faced scam allegations in the past. In 2023, Chinese police issued an official statement warning of fraudulent activities related to Pi, which stirred controversy. Recently, Ben Zhou, CEO of Bybit, labeled Pi Network as a scam, sparking further debate. Zhou stated, "Bybit will not list scam projects, and projects like Pi Network cannot be trusted." Supporters of Pi Network argue that the police warning was directed at isolated fraudulent cases exploiting Pi Network, not the network itself. Pi Network has announced plans to strengthen blockchain verification and expand official partnerships to regain trust. To overcome these controversies and restore confidence, Pi Network is pursuing various strategies. Beyond OKX, the network is seeking to enhance Pi coin's liquidity by collaborating with additional major exchanges. Binance is currently conducting a community vote, recording over 85% approval. Pi Network aims to extend its utility beyond a mere trading medium to be utilized in payments and dApps ecosystems. Approximately 19 million users have completed KYC verification, creating a more secure trading environment. While Pi Network currently maintains a partially centralized management system, it aims for a full transition to a decentralized blockchain in the future. Despite entering the blockchain ecosystem with its mainnet launch, the sharp drop in token prices following its trading debut and ongoing scam controversies render Pi Network's outlook uncertain. Restoring investor confidence and establishing practical network utility will be crucial determinants in Pi Network's success. It remains to be seen whether the Pi team can present and implement specific strategies to achieve these goals.