PI Coin ADAM February 21, 2025 0 Comments

Pi Coin Plummets 65% After Mainnet Launch, Solana Memecoin Activity Declines

The much-anticipated launch of Pi Network’s open mainnet has led to a sharp decline in the token’s value, with Pi Coin (PI) crashing over 65% within 24 hours. Concerns regarding liquidity, Know Your Customer (KYC) limitations, and alleged developer selloffs have fueled uncertainty among investors.

Initially projected to debut at over $60 based on IOU trading, Pi Coin entered centralized exchanges at a significantly lower value. The token briefly peaked at $2.10 before experiencing a sharp selloff, dipping below $1 and reaching an all-time low of $0.60, according to Coingecko data.

The token is now actively trading on platforms like OKX, Gate.io, Bitget, and Pionex. However, its rapid price decline has raised questions about its long-term viability.

Are Pi Holders Cashing Out?

Social media discussions highlight growing skepticism regarding Pi Coin’s future. Some crypto analysts believe the massive 100 billion token supply may hinder recovery, with speculation that the development team leveraged the hype to offload tokens onto retail investors.

One trader argued, “Pi Network may never recover due to its enormous supply of 100 billion PI. It appears the team dumped on retail investors.”

However, supporters of Pi Network have countered these claims, asserting that KYC verification has allowed many users to migrate their holdings successfully. Some investors have confirmed transferring thousands of tokens without issues.

Liquidity concerns remain, with market observers noting that Pi’s market capitalization suffered a staggering $100 billion reduction post-launch. Traders speculate that airdrop participants offloaded their holdings, accelerating the decline.

One crypto analyst stated, “Pi Coin has dropped 70% from its all-time high, erasing $100 billion in fully diluted valuation. Retail investors took massive losses while airdrop claimers dumped their holdings.”

While Pi Network struggles post-launch, Solana’s leading memecoin launchpad, Pump.fun, has also seen a sharp downturn in activity.

According to Solscan, daily token launches on Solana plummeted to 27,820 last Wednesday, marking a 70% decrease from its January peak of 95,578. Pump.fun, responsible for over half of Solana’s token launches, recorded only 35,152 new token listings on the same day, marking its weakest performance since December 2024.

Revenue for the platform also took a hit, dropping to $1.69 million—the lowest recorded since early November—according to Dune Analytics data.

January saw unprecedented activity on Pump.fun, partly fueled by political figures like former U.S. President Donald Trump and his wife, Melania Trump, who launched tokens before Trump resumed presidential duties. However, that hype has since cooled down.

At the time of writing, Pump.fun has facilitated the launch of over 7.8 million tokens across 13.5 million wallets. Despite this, data from Solana-based AI decentralized exchange Boltrade.ai shows that Pump.fun’s trading volume has dropped 82% since Christmas.

Many analysts believe that developers are capitalizing on investor interest to execute exit strategies. This pattern has resulted in fewer than 10 tokens maintaining a trading volume above $1 million for more than three days at a time.

Controversial Memecoin Endorsements Impact Market Sentiment

A recent incident involving Argentine President Javier Milei has further contributed to the downturn in memecoin activity. On February 14, Milei endorsed a memecoin called Libra (LIBRA) on his X (formerly Twitter) account, linking it to Argentina’s small business development initiative.

However, within hours, the president deleted his endorsement post amid insider trading allegations. Blockchain analytics firm Nansen later revealed that developers behind LIBRA executed a $251 million rug pull, leaving over 80% of traders with losses exceeding $1,500.

Market Outlook

The drastic decline in Pi Coin’s value and the slowdown in Solana memecoin activity highlight the volatility of the crypto space. While some investors remain optimistic about Pi Network’s long-term potential, concerns about liquidity, token supply, and market trust persist. Meanwhile, Solana’s memecoin sector may continue to struggle as investor confidence wavers amid growing skepticism about the legitimacy of new token launches.

With increased regulatory scrutiny and unpredictable market conditions, both Pi Coin and Solana memecoins face significant hurdles in the near future.