Pi Network has encountered significant challenges due to the falling value of the PI token and the increase in the number of issued tokens. The market is tough, and the illusion of success is no longer sufficient. The project faces legitimacy issues regarding its business model.
Programmable Inflation: Excess Supply
For several weeks, the Pi token has been trading at critically low levels. According to CoinMarketCap, its value stands at $0.6414, close to the historically low level reached on February 20, at $0.6152. The monthly release of over 126.6 million new tokens pressures the price. Alex Obchakevich noted: "Monthly unlockings exceed demand, which greatly affects the value of the token." The strategy of constant token issuance is confirmed by PiScan data: 4.9 billion tokens have been released to date, and an additional 1.54 billion tokens are expected to be unlocked over the next twelve months.
Project under Pressure: Ambitions and Distrust
Beyond the market, Pi Network faces criticism regarding its business model and legitimacy. The focus is on the project's innovative approach, based on a mobile application and a simplified mining mechanism through daily check-ins. In February, Bybit exchange chief Ben Zhou expressed doubt about the nature of the project, stating: “Yes, I still think you are a scam, and no, Bybit will not list you.” Despite this, some analysts continue to see untapped potential in Pi Network. Alex Obchakevich believes that the project “has the potential to one day compete with the top ten cryptos,” provided its development and network adoption strengthen.
Strategic Dilemma: On the Path to an Uncertain Future
Founders from Stanford University rely on a large community to launch the ecosystem. However, in a competitive market with stricter financing conditions, promises are not enough. The current situation presents a strategic dilemma: continue leveraging the community with incentive mechanisms or shift towards more technical development focusing on real-world use. The future of Pi Network may depend on its ability to move beyond promises and deliver a tangible product. Without this, distrust could worsen the situation and lead to continued corrections.
Pi Network is at a crossroads, and its future depends on the ability to overcome current challenges, move beyond promises, and deliver real value. Significant changes are necessary to keep the project afloat and regain community and investor trust.
