The long-awaited launch of Pi Network’s Open Mainnet triggered sharp price movements for its native token, Pi (PI), on Feb. 20, as early enthusiasm gave way to a swift sell-off.
Pi Network has moved from its closed beta to an open Blockchain, making it possible to conduct transactions outside of the Pi Network ecosystem.
The shift is expected to expand the token’s real-world use and increase its accessibility on external platforms. Pi Network’s development team said in a statement:
“The transition to Open Network will enable Pi to connect with external networks on the Mainnet blockchain, allowing users to conduct transactions outside the Pi ecosystem.”
It also opens the door to integrations with decentralized apps and exchange listing. However, the road remains fraught with challenges due to uncertainty around the project’s legality.
After surge, crash
Pi’s price soared to $2.10 in less than an hour after the announcement. Its trading volume increased by 1,700%. The speculation surrounding the launch caused a buy-frenzy.
But the rally was only short-lived. Pi fell more than 52% in less than an hour to a price of just $1.01 and erased the gains that had been made during the previous day. The token’s market capitalization fell to $7.02 billion, raising concerns about long-term price stability.
With a total supply of 9.7 billion tokens, Pi’s fully diluted valuation (FDV) currently stands at approximately $83.07 billion.
Analysts warn that future releases of tokens could lead to further downward pressure if the demand does not keep up with supply.
The uncertainty remains
Pi Network, which was launched in 2019 and has attracted millions of users since then, is a mobile friendly alternative to the traditional cryptocurrency. Open Network’s launch is seen by supporters as a significant step towards broader adoption, allowing real-world transaction.
Uncertainty persists despite the optimism. Critics point to unclear tokenomics, potential regulatory hurdles, and the absence of confirmed exchange listings as challenges that could limit Pi’s long-term viability.
In addition, the company’s history of regulatory and legal issues has raised concerns in the industry. Several major exchanges have denied its application for listing. Binance finally let the community vote, which led to an 85% positive outcome for Pi.
The support of the local community does not reduce the level of uncertainty surrounding this project. In fact, it was declared a scam in the year 2023 by legal authorities.
Posted In: Featured, Tokens, Trading Author 
Assad Jafri
AJ is a dedicated journalist who has spent over a decade honing his skills around the world. He specializes in financial reporting and now concentrates on cryptocurrency.
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