In the cryptocurrency market over the past 24 hours, Pi Network has gained attention following a significant announcement from its team. However, the price of the PI token has sharply declined, falling below $0.90.
Launch of Pi Network Ventures Fund
On May 14, the Pi Core Team announced the launch of **Pi Network Ventures**, a $100 million fund aimed at supporting real-world applications of Pi. The fund will back startups and projects that develop utility around the Pi token, particularly in sectors like AI, fintech, e-commerce, and social platforms.
Reasons Behind PI Price Drop
The price drop may seem unexpected, but it represents a classic case of 'Buy the rumor, sell the news.' The momentum began on May 8 when the Pi Core Team hinted at an upcoming announcement, triggering a buying frenzy that drove the price of PI to $1.6699. Following the official launch of the fund on May 14, profit-taking led to a sell-off and a further drop of 37% to $0.81.
Future of Pi Network and Potential Outcomes
Currently, the price of PI appears to be stabilizing after short-term volatility. The venture fund's plan to invest in real businesses could increase actual usage of PI, which has been lacking so far. If successful, these investments could drive demand for the token over time.
In summary, the current price drop may be a temporary setback. If the fund's initiatives and real-world adoption succeed, they could lay the groundwork for significant growth in the future.
