Pi Network’s Token Plunges After Volatile Mainnet Debut, Sparking Frustration Among Retail Traders

Pi Network’s (PI) token plunged more than 11% in early U.S. trading on Thursday, continuing a volatile debut following its long-awaited mainnet launch.

The token initially surged over 35% to an all-time high of $1.97 at launch but quickly retraced and is now trading roughly 38% below that peak, according to CoinGecko. 

The sharp pullback has frustrated some investors, with market watchers attributing the downturn to selling pressure from long-term holders.

Pi Network’s mainnet launch was one of the most anticipated events in crypto, having been in development for nearly seven years. 

The project’s unique tap-to-earn model — where users earn Pi coins by simply tapping their screens and referring others — has amassed millions of users, making it one of the largest pre-market crypto communities.

The Pi Network has over 3.8 million followers on X, surpassing networks like Ethereum (ETH) and Solana (SOL).

Following the launch, Pi coins, which previously had no tradable value, are now being actively bought and sold on crypto exchanges. 

Major crypto exchanges such as OKX and Bitget have already listed Pi, while Binance is conducting a community poll to gauge interest in a potential listing. Currently, 85% of voters support adding Pi Network to Binance, though the exchange has clarified that a vote does not guarantee a listing. The poll is set to conclude on Feb. 27.

The listings have enabled investors to transfer and utilize the token in transactions, while developers on the network can showcase their applications to a global user base. 

Despite the excitement, Pi’s post-launch performance has drawn mixed reactions. Users on Stocktwits expressed frustration that gains evaporated within two hours of trading, highlighting concerns about the token’s long-term stability.

Skeptics have raised concerns about its unconventional earning model, with some likening it to a Ponzi scheme. 

Pi Network’s referral-based mining model has led some to compare it to a pyramid scheme. In 2021, the project was accused of exposing 17GB of personal data from 10,000 Vietnamese citizens, though its team refuted the allegations.

Comparisons have also been drawn to Hamster Kombat (HMSTR.X), another tap-to-earn viral project that failed to maintain its early momentum.

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