Pi Network Price Decline Amid Broader Cryptocurrency Recovery

The Pi Network price has significantly underperformed compared to the broader cryptocurrency market, experiencing a sharp decline of nearly 80% from its highs in February. While major cryptocurrencies like Bitcoin have surged, crossing $93,000 and pushing the total market capitalization of cryptocurrencies to nearly $3 trillion, Pi Network has struggled to keep pace.

Pi Network’s market cap has plummeted from $19 billion to $4.62 billion, and its fully diluted valuation (FDV) has decreased from over $300 billion to $66 billion. Despite these setbacks, publicly available data indicates that Pi Network’s founders, Nicolas Kokkalis and Chengdiao Fan, have achieved billionaire status thanks to their holdings in the project.

Token Allocation and Supply Breakdown

A recent report revealed that Pi Network has a maximum supply of 100 billion tokens. Out of this total, 65 billion tokens have been allocated to the millions of “pioneers” and community members who support the network. Additionally, the core team and the Pi Network Foundation have been assigned significant portions of the token supply.

Core Team Token Allocation

The Pi Network core team has been allocated 20 billion tokens, which is currently valued at approximately $13.2 billion based on the network’s FDV. If these tokens are equally split between the two founders, Nicolas Kokkalis and Chengdiao Fan, their combined net worth from Pi Coin alone would be around $6.6 billion.

While specific details about the number of employees at SocialChain, Pi Network’s parent company, remain unclear, reports suggest the company employs approximately 40 people. Assuming only the founders benefit from the core team’s allocation, both Kokkalis and Fan would individually hold over $1 billion worth of tokens.

Pi Network Foundation Allocation

The Pi Network Foundation has been allocated 10 billion tokens, valued at over $6.6 billion. Although the foundation’s structure has not been disclosed, it is common for project founders to maintain control over these reserves, potentially increasing their personal net worth.

There is also speculation that Kokkalis and Fan might hold a portion of the 65 billion tokens distributed to community members, further boosting their holdings.

Token Unlock Schedule

Despite these allocations, the majority of tokens remain locked, limiting immediate access to funds for the founders and community members. According to available data, the network will gradually unlock tokens over time, with the unlocking process expected to continue until May 2028.

The average monthly unlock is approximately 131.2 million coins, which are currently valued at around $87 million.

This staggered unlocking mechanism ensures a gradual release of liquidity into the market, potentially helping to stabilize the token’s price over the coming years.

Final Thoughts

While the Pi Network has faced significant challenges in its price performance, its founders remain among the wealthiest individuals in the cryptocurrency space due to their substantial token allocations. As the token unlocking process progresses and the project matures, the network’s valuation and market presence will likely continue to evolve.

Keywords: Pi Network, Pi Coin, cryptocurrency market cap, token allocation, crypto investing, Bitcoin recovery, cryptocurrency valuation.

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