Pi Network's Price Plummets 70% Amidst Mainnet Launch Issues

Pi Network, launched in 2019, promised a revolutionary concept: mining cryptocurrency directly from a smartphone without the need for expensive equipment or high electricity costs. This innovative idea attracted millions of users worldwide, who were enticed by the prospect of "free" mobile mining and the potential to be early adopters of the next big cryptocurrency. The app's simplicity—requiring users to sign up, invite friends, and tap a button every 24 hours—fueled its rapid growth, with over 70 million users joining the platform.

The roadmap for Pi Network was designed to be gradual, starting with mobile mining and progressing to a testnet, KYC rollout, and finally, a full mainnet launch with real trading and utility. However, the transition to the mainnet took much longer than anticipated. When the mainnet finally opened for external trading in February 2025, it faced significant challenges. Many users encountered issues migrating their balances, and KYC verification became a bottleneck, leaving many users uncertain about when or if they would access their mined tokens.

The price of Pi also experienced a rollercoaster ride. Initially, it spiked to as high as $2.98 in late February 2025, but the hype quickly faded. As early adopters began selling their tokens and real-world use cases remained scarce, the price plummeted to around $0.58 by early May 2025, wiping out more than 70% of its value. Additionally, the lack of real utility for Pi tokens meant that users could only spend them in small, community-run markets and pilot programs, with no clear timeline for broader adoption.

As the months turned into years, skepticism within the crypto community grew. Several red flags emerged, including the delayed mainnet launch, the core team's control over the project, and a lack of transparency regarding the project's inner workings. Despite claims of decentralization, the Pi Core Team retained significant control over active mainnet nodes and the majority of the token supply, which raised concerns about the project's decentralized nature. The white paper was vague, and there was no clear breakdown of tokenomics, timelines for token unlocking, or burn mechanics, making it difficult for users to assess the project's health and future value.

Exchange listings also became a contentious issue. Despite years of hype, Pi was not listed on major exchanges like Binance or Coinbase. It was tradable on some platforms like OKX and Bitget, but users reported difficulties withdrawing their tokens, with exchanges citing technical reasons. This lack of liquidity and reliability further eroded trust in the project. For instance, one user on Bitget reported depositing 1,500 Pi tokens but found them inaccessible, with no clear timeline for resolution. On OKX, withdrawals were suspended for over 24 hours, and users were given vague responses about the resolution time.

By April 2025, users reported that MEXC, another exchange listing Pi, suspended Pi withdrawals, sparking concerns about liquidity and platform reliability. This was compounded by reports of large Pi transfers from MEXC, Gate.io, and Bitget to OKX wallets, raising suspicions of coordinated price manipulation or exchange-level issues. The volume of Pi trading also dropped significantly, from billions in February 2025 to around $40 million a few months later, raising questions about the authenticity of the demand.

Many users found themselves trapped in a closed loop, unable to use or withdraw their Pi tokens. Without access to real exchanges or spending options, they were stuck watching a number go up in an app with no way to convert it into anything useful. While Pi Network claims over 70 million users, blockchain data indicates that only about 9.11 million wallets exist, with approximately 20,000 showing daily activity, highlighting the discrepancy between claimed and active users.

Pi Network's legitimacy has been questioned by critics such as Ben Zhou, CEO of Bybit, and Justin Bons, founder of Cyber Capital, who have publicly expressed skepticism regarding the project. The combination of opaque operations, aggressive referral tactics, and questionable monetization strategies has raised eyebrows within the crypto community. The app is filled with ads, and users are required to complete KYC verification, handing over personal data in exchange for the ability to mine Pi.

Despite these challenges, there is still a possibility for Pi Network to recover, but it would require significant changes. Transparency, real utility, broader exchange listings, and genuine decentralization are crucial for rebuilding trust and momentum. However, the passage of time and the significant drop in Pi's price and user engagement make the path forward challenging. Without these changes, Pi Network risks fading into obscurity, remembered more for its unfulfilled promises than its achievements.