The long-anticipated launch of Pi Network’s open mainnet has sparked intense reactions across the crypto community.
While the transition was exciting, leading to a sharp surge in the token’s price, the rally was short-lived as Pi’s value dropped by more than 50% within hours.
This volatility has raised concerns about the project’s long-term stability, regulatory challenges, and actual utility. With strong community backing but ongoing scepticism, Pi Network now faces a crucial test in proving its viability beyond speculation.
Pi Network’s Open Mainnet and Its Immediate Market Impact
Pi Network’s transition to an open blockchain marks a significant step for a project in development since 2019.
Previously, Pi tokens existed only within a closed ecosystem where users could mine through a mobile application without requiring powerful hardware. The open mainnet launch allows users to transact freely and trade Pi on external platforms, making it more accessible.
Source: Coingecko
Following the launch, Pi experienced an initial price surge, jumping by 45% to reach $2.10. Trading volume skyrocketed by 1,700% as investors rushed to capitalise on the event.
However, this enthusiasm quickly faded, and within hours, Pi’s price dropped more than 50% to $1.01. The sell-off wiped out most early gains and raised concerns about the token’s long-term stability.
One of the biggest challenges for Pi Network lies in its massive total supply of 9.7 billion tokens, with a fully diluted valuation (FDV) at one point reaching an astonishing $195 billion, which is almost twice that of Solana (SOL).
This figure raised eyebrows, as such valuations are typically seen in projects with strong adoption and established use cases. While Pi’s market cap has since declined, the sharp volatility highlights concerns over its sustainability in a competitive market.
Exchange support remains mixed. Platforms like OKX, Bitget, and BitMart have embraced Pi, offering trading and promotional incentives.
However, Binance has approached with caution, allowing a community vote to decide on a potential listing. This hesitation reflects broader uncertainty surrounding the project as investors weigh Pi’s potential against its risks.
Regulatory Scrutiny and Market Challenges
While Pi Network has gained a massive following, regulatory scrutiny remains one of its biggest obstacles. In 2023, Chinese authorities issued a warning labelling Pi as a potential pyramid scheme, citing its referral-based mining model.
The criticism resurfaced when Bybit CEO Ben Zhou shared this warning following the open mainnet launch, reiterating concerns over Pi’s legitimacy.
Pi Network’s mining model allows users to earn tokens by simply using a mobile application. While this has enabled mass adoption, critics argue that it closely resembles a multi-level marketing (MLM) structure, where early adopters benefit the most.
Regulators have also questioned the project’s economic model, as the vast token supply could lead to sustained downward price pressure if demand does not match issuance.
Despite this, Pi continues to receive strong community support. The project boasts over 60 million users, making it one of the most widely adopted blockchain initiatives.
Enthusiasts argue that the open mainnet will unlock new opportunities, allowing developers to build decentralised applications (DApps) and expand real-world use cases.
However, these developments are still in their early stages, and without tangible applications, Pi’s long-term demand remains uncertain.
Exchange adoption has also been uneven. While some platforms have listed Pi, others remain sceptical.
Binance’s decision to hold a community vote highlights the division within the crypto space, as some view Pi as an opportunity while others see it as a risky bet.
The broader market sentiment will play a crucial role in determining Pi’s future. If the network can establish practical use cases and overcome regulatory concerns, it may solidify its position as a legitimate blockchain project.
However, if scepticism prevails, Pi could struggle to maintain long-term value, especially with early adopters offloading their holdings.
Conclusion
Pi Network’s open mainnet launch marks a significant milestone, but its long-term success remains uncertain.
While the project has amassed a large user base and gained exchange listings, regulatory scrutiny and market volatility continue to pose challenges.
The initial price surge followed by a sharp decline highlights concerns over Pi’s sustainability, particularly given its large token supply and speculative nature.
Whether Pi Network can establish real-world utility and overcome scepticism will determine its future trajectory in an increasingly competitive crypto landscape.