Pi Network’s native token PI has crashed roughly 73% less than one month after reaching its all-time high at $2.99 on Feb. 26.
As of press time, Pi was trading at $0.81, inching closer to its $0.70 launch price on Feb. 20.
The performance is significantly below the crypto market average performance in the same period, as altcoins corrected 6.9% on average. This makes PI drawdown over 10x deeper than the rest of the market.
PI has been facing pressure from its own token design since users can mint tokens and increase supply by interacting with applications on the network.
A Keyrock report published in December 2024 pointed out that over 90% of token unlocks exert negative price pressure, with effects taking up to 30 days to materialize.
According to PiScan, the network will issue over 102 million PI tokens over the next 30 days, averaging 3.4 million daily. This would be more than 1% of PI’s circulating supply.
At the current price of $0.81, the dollar-denominated supply pressure is $82.6 million — roughly $2.7 million daily.
According to a Tokenomist report, Pi Network is responsible for 4% of the $2 billion in token unlocks scheduled for April.
Controversy around PI
Pi Network has been criticized for several reasons in the weeks before and since its launch last month. Industry participants have raised concerns about its operations resembling a multi-level marketing scheme.
The project’s delayed mainnet launch and limited details on token utility have exacerbated concerns about whether Pi can deliver on its promise of accessible, decentralized value transfer.
Bybit CEO Ben Zhou recently drew attention to a report issued by Chinese law enforcement that described Pi as fraudulent.
The report claimed that the project targeted vulnerable populations, including elderly users, by promising financial gain. It also accused the network of allegedly harvesting its users’ personal data.
The report further attributed financial losses, including pension depletion, to the project’s influence in China.
Separately, Moonrock Capital CEO Simon Dedic expressed skepticism over Pi’s reported $26 billion fully diluted valuation and claims that 60% of the supply is already in circulation.
Dedic said that the project “has built a strong cult following among non-crypto users who shill it purely for financial reasons.” He further alleged that Pi Network was a “giant Ponzi” that achieved virality through promises of “free money.”
Pi denies allegations
In a public statement issued on Feb. 22, Pi Network rejected the allegations and clarified its position regarding the Chinese police report.
The team stated that the report referred to unauthorized third parties falsely associating themselves with Pi and that no authorities had contacted Pi Network itself regarding the matter.
The project reiterated that it is not affiliated with those actors and emphasized its intention to launch responsibly.
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