For several years, Pi Network has been a hot topic in the world of cryptocurrency, generating both excitement and skepticism.
What is Pi Network?
Unlike traditional cryptocurrencies that require expensive and complicated mining equipment, Pi Network allows anyone to mine its digital currency, called Pi, simply by using their mobile phones. This approach attracted millions of users who hoped they were getting in early on what could be the next big cryptocurrency.
However, for a long time, Pi was a closed system. Although users were able to gather Pi tokens, they couldn’t trade them on major exchanges where cryptocurrencies are typically bought and sold. That changed on February 20, 2024, when Pi Network launched its Open Mainnet, allowing users to trade their tokens on external exchanges for the first time.
This launch brought a mix of emotions: some users were thrilled, while others felt disappointed and skeptical. Some viewed the listing as a significant achievement, while others believed it proved that Pi Network was not what it claimed to be.
The Path to Trading Pi Tokens
Pi Network was established in 2019 by a group of graduates from Stanford University who wanted to make cryptocurrency accessible to everyone. They encouraged users to invite their friends to join the network, which helped it grow rapidly. By 2021, there were over 30 million users, referred to as “Pioneers.” However, even with this large community, users were frustrated because they couldn’t use or sell their tokens outside of Pi’s closed environment.
Critics often questioned whether Pi Network was a legitimate blockchain project or just a clever marketing strategy. Even as the team behind Pi worked on building the necessary infrastructure, users became increasingly impatient about the delays in launching an open network.
In December 2023, rumors surfaced that the launch of the Open Mainnet had been postponed again, which heightened user frustration. However, the Pi team assured everyone that the launch was imminent.
Finally, on February 20, 2024, the Open Mainnet was launched, allowing users to transfer their mined tokens to other platforms and trade them on centralized exchanges (CEXs).
The Excitement and the Crash
When the Open Mainnet went live, several well-known crypto exchanges, including OKX, MEXC, Bitget, and BitMart, quickly listed Pi for trading. This was a moment of celebration for many users who had waited years for this opportunity.
However, the initial excitement was short-lived. Within hours of being listed, the price of Pi surged to $1.84 but then plummeted by over 65%, dropping to $0.64. Some traders were able to sell their tokens for a profit, while others found themselves holding tokens that were worth much less than they had anticipated.
One major reason for this sharp price drop was low liquidity. Even though millions of users had mined Pi, only about 1 billion out of a total of 9.7 billion tokens were available for trading at first. This limited supply, combined with speculative trading, led to extreme price fluctuations.
Additionally, some exchanges, like Bybit, chose not to list Pi at all. The CEO of Bybit even accused Pi Network of being a scam, referencing a warning from Chinese authorities in 2023 that labeled it as a “fraud targeting elderly investors.” The creators of Pi did not respond to these allegations, which only fueled skepticism about the project.
The Binance Situation
While some exchanges quickly listed Pi, Binance, the largest crypto exchange in the world, took a different approach. Instead of making a decision on its own, Binance decided to let its users vote on whether Pi should be listed. This move was seen as a way to gauge genuine interest in Pi Network while also protecting itself from potential backlash if the project turned out to be problematic. The results of this vote were set to be announced on February 27, 2024.
The debate surrounding Pi’s legitimacy remains unresolved. While the project claims to have over 60 million users, only about 9.1 million active wallets are visible on blockchain explorers, raising questions about how many people are actually using the token. Furthermore, despite claims of decentralization, Pi Network is still largely controlled by its founding team, and there is no clear timeline for when independent validators will join the network.
What’s Next for Pi Network?
With Pi now trading on major exchanges, many are wondering what the future holds. The first question is whether the price will stabilize. Currently, it fluctuates between $0.65 and $1. The future price will depend on liquidity, support from exchanges, and user demand. If Binance decides to list Pi, it could boost confidence and potentially increase the price.
There are also concerns about whether Pi Network can prove itself as a legitimate blockchain. Critics argue that its economic model resembles a pyramid scheme, where users are rewarded for recruiting others. The success of Pi will depend on whether real-world businesses begin to adopt it as a method of payment.
The outcome of Binance’s upcoming vote will be critical. If Pi is listed on Binance, other major platforms like Coinbase and Kraken may follow suit. However, if Binance decides against listing it, other exchanges might also hesitate.
Ultimately, many users mined Pi for free, so some may choose to sell their tokens quickly to cash out, while others might hold on in hopes that the price will increase in the future. The success of Pi’s lock-up program, which encourages users to keep their tokens, will also play a role in stabilizing the price.
In Conclusion
Pi Network’s journey has been long, filled with controversy and speculation. The launch of its Open Mainnet and its listing on exchanges are significant steps, but they have also revealed weaknesses in the project’s economic model and liquidity.
For now, Pi remains a high-risk, high-reward investment. If the project can deliver on its promises, it might become a significant player in the cryptocurrency market. However, if it fails to establish a strong ecosystem with real-world applications, it could end up as just another overhyped project that fades away.
As the initial excitement settles, everyone is watching to see if Pi Network can truly change the landscape of cryptocurrency or if it was merely a speculative bubble ready to burst.
