Theta Network (theta) 
Pi Network Crashes After Mainnet Launch, Wiping Out $6 Billion in Two Days
Pi Network’s highly anticipated mainnet launch ended in a dismal performance, with the Pi coin price plummeting 79.2% to $0.76, down from its initial price of $2. This drastic decline resulted in a staggering $6 billion wipeout in just two days.
Four Key Reasons Behind the Pi Coin Price Crash
The Pi coin price crash can be attributed to several factors. Here are four main reasons that contributed to this downturn:
Accusations of Scam and Lack of Trust
Ben Zhou, CEO of Bybit, a prominent cryptocurrency exchange, publicly denounced Pi Network as a scam. He cited a Chinese police warning from 2023 that accused Pi of targeting elderly individuals, leaking their personal data, and resulting in loss of pension. Although Pi Network has denied these allegations, the damage to its reputation has already been done.
Pioneers Dumping Tokens Amid Panic
Historically, many pre-mainnet launch token holders tend to sell their tokens immediately after the mainnet launch to minimize potential losses. In Pi Network’s case, the fear of a similar fate to other tap-to-earn tokens, which have crashed without recovering, may have prompted pioneers to dump their tokens, exacerbating the price decline.
Poor Performance of Recently Launched Tokens
The cryptocurrency market has seen a trend of newly launched tokens experiencing significant price drops. For example, Wormhole, ZkSync, and EigenLayer have all crashed after their initial launches. This waning investor confidence in new tokens may have contributed to the Pi coin price crash.
Crypto Market Weakness
The ongoing weakness in the cryptocurrency market, with Bitcoin and other major altcoins experiencing corrections, has also played a role in the Pi Network price crash. A bearish market environment tends to negatively impact newly launched tokens, making it challenging for them to gain traction.
Will Pi Network Price Rebound?
Predicting whether the Pi Network coin will bounce back this year is challenging, as it is currently in a price-discovery phase. A potential rebound will likely depend on increased demand from investors and the growth of its ecosystem. The success of its network’s apps, such as those on the Ethereum network, may be a catalyst for price growth.
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