Pi Community crashed after the mainnet launch, resulting in a $6 billion wipeout within the first two days.
Pi Community (PI) was buying and selling at $0.76 on Saturday, down from the mainnet launch value of $2. Listed below are the 4 major explanation why the Pi coin value crashed.
Pi Community costs crashes amid rip-off accusations
A key purpose why the Pi coin value crashed is that Ben Zhou, Bybit’s chief govt officer, attacked it of being a rip-off. He cited a Chinese language report that accused Pi of being a rip-off focused in direction of the aged.
Pi Community has rejected these accusations and maintained that it’s a real crypto challenge that has been in growth within the final six years.
Bybit’s CEO assertion was notable for 2 causes. First, the corporate has grow to be the second-biggest crypto trade when it comes to quantity after Binance. Second, it got here on the identical day {that a} $1.4 billion hack occurred on its trade.
Pioneers possible dumped their tokens amid panic
One more reason why the Pi coin value crashed is that many pioneers determined to dump their tokens after the mainnet launch.
Traditionally, most pre-mainnet launch token holders promote them as quickly as attainable to forestall additional losses. In Pi Community’s case, many of those holders have seen different tap-to-earn tokens crash with out bouncing again.
The chart beneath exhibits that every one tap-to-earn tokens on the TON blockchain have crashed after their mainnet launch. This contains widespread names like Notcoin (NOT) and Hamster Kombat.
Many newly launched tokens crash
Additional, Pi Community value crashed as a result of many recently-launched tokens have crashed. For instance, a high-utility token like Wormhole (W) initially peaked at $1.6 after its airdrop in April final 12 months and has crashed to $0.18.
Equally, ZkSync (ZK) value soared to $0.2942 after its airdrop after which dropped to $0.1. EigenLayer (EIGEN), one other blue-chip coin, dropped from $5.6 in 2024 to $2.
Most not too long ago, Official Trump and Melania meme cash have plunged by over 80% from their peak.
Pi coin value crashed as cryptocurrencies dived
Additional, the Pi Community value crash accelerated due to the continuing weak spot within the crypto trade. Bitcoin value stays in a correction after falling by 10% from its all-time excessive. Different altcoins like Ethereum, Cardano, Algorand, and Close to have additionally pulled again by double digits from their November highs.
The crypto worry and greed index has moved from the intense greed zone of 88 to the impartial level of 40. Traditionally, newly launched tokens do nicely when there’s a bull market.
It is a related idea as within the preliminary public choices, the place many newly listed corporations rise when shares are doing nicely.
Will Pi Community value rebound?
It’s exhausting to foretell whether or not the Pi Community coin will bounce again this 12 months since it’s in a price-discovery section. Its rebound will possible rely on extra demand coming in from buyers, and its ecosystem progress.
Pi Community had about 100 apps on its community on the mainnet launch. A powerful consumer progress for a few of these apps could also be a great catalyst for the value.
For instance, wildly widespread dApps like AAVE and Uniswap have helped to assist the Ethereum community prior to now few years.