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 worth of $2. Listed here are the 4 principal the reason why the Pi coin worth crashed.
Pi Community costs crashes amid rip-off accusations
A key purpose why the Pi coin worth crashed is that Ben Zhou, Bybit’s chief government 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 mission that has been in improvement within the final six years.
Bybit’s CEO assertion was notable for 2 causes. First, the corporate has develop into the second-biggest crypto change when it comes to quantity after Binance. Second, it got here on the identical day {that a} $1.4 billion hack occurred on its change.
Pioneers doubtless dumped their tokens amid panic
Another excuse why the Pi coin worth 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 potential to stop 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 reveals that every one tap-to-earn tokens on the TON blockchain have crashed after their mainnet launch. This consists of well-liked names like Notcoin (NOT) and Hamster Kombat.
Many newly launched tokens crash
Additional, Pi Community worth 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) worth 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 lately, Official Trump and Melania meme cash have plunged by over 80% from their peak.
Pi coin worth crashed as cryptocurrencies dived
Additional, the Pi Community worth crash accelerated due to the continued weak point within the crypto business. Bitcoin worth 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 properly when there’s a bull market.
This can be a related idea as within the preliminary public choices, the place many newly listed corporations rise when shares are doing properly.
Will Pi Community worth rebound?
It’s arduous to foretell whether or not the Pi Community coin will bounce again this 12 months since it’s in a price-discovery part. Its rebound will doubtless rely on extra demand coming in from traders, and its ecosystem development.
Pi Community had about 100 apps on its community on the mainnet launch. A powerful person development for a few of these apps could also be an excellent catalyst for the value.
For instance, wildly well-liked dApps like AAVE and Uniswap have helped to help the Ethereum community up to now few years.