The PI network crashed after the launch of the mainnet, resulting in a $6 billion wipeout in the first two days.
The PI Network (PI) was trading at $0.76 on Saturday, starting from MainNet's launch price of $2. Here are four main reasons why PI coin prices crashed:
PI network prices crash amid scam accusations
The main reason for the crash in PI coin prices is that Bybit CEO Ben Zhou attacked the scam. He cited a report from China that accused the PI of being a scam targeting elderly people.
The PI Network rejected these charges and claimed it was a genuine cryptographic project developed over the past six years.
Bybit's CEO statement was notable for two reasons. First, the company became the second largest crypto exchange. From the perspective of post-Binance volume. Secondly, it came on the same day that the $1.4 billion hack happened in that exchange.
Pioneer may have dumped the token in panic
Another reason why PI coin prices crashed is because many pioneers decided to throw away their tokens after the release of the mainnet.
Historically, most Primine Nets sell token holders as quickly as possible to prevent further losses. For PI networks, many of these owners have seen the Yern from other taps The token crashes without bounce back.
The chart below shows that all of the tap-to-alene tokens on the Ton Blockchain crashed after the launch of the mainnet. This includes popular names such as Notcoin (Not) and Hamster Kombat.
Many newly released token crashes
Additionally, the PI network price has crashed due to a recent token launch. High utility tokens like Wormhole (W), for example, initially peaked at $1.6 after airdrops last April, crashing to $0.18.
Similarly, ZKSYNC (ZK) prices surged to $0.2942 after airdrop, then fell to $0.1. Another blue chip coin, Eigenlayer (Eigen), fell to $2 from $5.6 in 2024.
Recently, official Trump and Melania meme coins have plummeted more than 80% from their peak.
When cryptocurrency pops out, PI coin price crashed
Furthermore, the crash in PI network prices has accelerated due to the ongoing debilitating weakness in the crypto industry. Bitcoin prices remain fixed after a 10% drop from an all-time high. Other Altcoins, such as Ethereum, Cardano and Algorand, were also pulled back in double digits from their November highs.
The Crypto Fear and Greedy Index moved from the extreme greedy zone of 88 to 40 neutral points. Historically, newly launched tokens work well when there is a bull market.
This is a similar concept to the first public offering that rises when many newly listed companies are on track with stocks.
Will the PI network price be rebound?
With Pi Network Coin in the price gap stage, it's difficult to predict whether it will return this year. That rebound will likely depend on more demand from investors and the growth of its ecosystem.
The PI network had around 100 apps on the network when the mainnet was started. The growth of some powerful users of these apps may be a good catalyst for the price.
For example, very popular Dapps like Aave and Uniswap have helped support the Ethereum Network over the past few years.
