The long-anticipated Pi Network has finally launched an open market for its token, sparking both enthusiasm and controversy. How did the project achieve this, and what followed?
The Path to Pi's Listing
Launched in 2019 by Stanford graduates, Pi Network promised to make cryptocurrency accessible to everyone. The project quickly gained popularity due to its mobile mining convenience and an aggressive referral model. By 2021, the number of 'Pioneers' surpassed 30 million. Nonetheless, the network activity was constrained within an 'Enclosed Network,' preventing trades and raising questions about the project's legitimacy. In February 2024, the team officially announced the launch of the Open Network, allowing users to start trading tokens on centralized exchanges.
The Listing and 65% Price Crash
Following the open network launch, major crypto exchanges like OKX and BitMart quickly listed the token. Despite initial excitement and a price surge to $1.84, it soon crashed by over 65%. One reason for the sharp drop was low liquidity: out of 9.7 billion tokens, only about 1 billion were available for trading, which created volatility. Additionally, the situation was aggravated by refusals from some exchanges, such as Bybit, due to concerns about fraud.
The Legitimacy Debate and Future of the Project
Unlike other exchanges, Binance decided to let users vote on whether to list the token. The debate over Pi's legitimacy continues. Despite claims of 60 million users, the number of active wallets is significantly lower. The economic model of the network, resembling a pyramid scheme, also raises doubts. The future of the project depends on its capacity to gain real-world usage of the token and support from major exchanges. The upcoming vote on Binance is expected to be a turning point for the project's future.
Pi Network has made a significant step by launching the open network, yet many questions remain unanswered. Whether the project can establish its legitimacy and attract real-world applications in the cryptocurrency world will only be revealed with time. For now, the successes and issues continue to place Pi at the forefront of cryptocurrency discourse.
