Pi Coin Price Plunges Over 55% After Launch: 5 Key Factors Behind the Sharp Drop!

Pi Coin Price Plunges Over 55% After Launch:
5 Key Factors Behind the Sharp Drop!

Pi Coin, the highly anticipated cryptocurrency from Pi Network, faced a turbulent market debut, experiencing a staggering 55% drop in value within the first 24 hours of trading. The token, which initially launched on major exchanges such as OKX, Gate.io, and Bitget, saw its price peak above $2 before plummeting to $0.78. This unexpected downturn has left investors and analysts scrambling to determine the driving forces behind the sharp decline.

While market volatility is common for newly launched cryptocurrencies, several factors appear to have contributed to Pi Coin’s drastic drop in value. Below, we explore five critical reasons behind this price collapse:

1. Early Miners Cashing Out

One of the primary reasons for Pi Coin’s price dip is the mass liquidation by early miners. Pi Network users, known as ‘Pioneers,’ had been mining Pi Coins on their mobile devices for years. Now that the token is finally tradable, many of these early adopters rushed to sell their holdings, leading to an oversupply in the market and a subsequent price drop.

Digital currency analyst Kim H. Wong highlighted this phenomenon, stating on X (formerly Twitter), “Trading in Pi is disappointing as pioneers keep selling, and buy orders are small. However, as sellers exhaust their supply, buyers may step in, stabilizing the price.”

2. Lack of Major Exchange Listings

Although Pi Coin debuted on notable exchanges like OKX and Gate.io, it remains absent from industry giants such as Binance and Coinbase. The absence of these high-profile platforms limits liquidity and overall investor confidence, contributing to weaker demand and increased price volatility.

3. Unrealistic Price Expectations

Prior to the mainnet launch, unofficial over-the-counter (OTC) markets valued Pi Coin as high as $200. Many investors entered the market expecting similar price levels, only to be met with much lower real-world trading values. This mismatch between expectation and reality led to panic selling and further price declines.

4. Uncertainty Over Real-World Use Cases

Unlike established cryptocurrencies such as Bitcoin and Ethereum, Pi Coin still lacks a robust ecosystem of real-world applications. While the Pi Network has emphasized its vision for a decentralized digital economy, its current utility remains limited to peer-to-peer transactions. Without clear adoption strategies or partnerships, investor skepticism continues to weigh heavily on the coin’s price.

5.

Conditions & Speculative Trading

The broader cryptocurrency market has experienced fluctuations, with heightened volatility affecting several digital assets. Additionally, speculative trading by short-term investors seeking quick profits has amplified the price swings, making Pi Coin’s trajectory even more unpredictable.

What’s Next for Pi Coin?

Despite its rocky start, Pi Network’s long-term success will depend on its ability to build real-world utility, secure listings on larger exchanges, and maintain investor confidence. If selling pressure diminishes and more institutional interest develops, the token could recover in the coming months.

For now, investors should proceed with caution, conduct thorough research, and stay updated on Pi Network’s developments before making any trading decisions.