The highly anticipated mainnet launch of Pi Network took a disastrous turn as the cryptocurrency crashed, wiping out an estimated $6 billion in value within the first two days. After debuting at $2, the Pi coin price plummeted to $0.76 by Saturday, raising concerns among investors and the crypto community.
One major factor behind the crash was criticism from Bybit’s CEO, Ben Zhou, who labeled Pi Network as a scam. His claims were based on a Chinese report alleging that the project targeted elderly investors with deceptive promises.
In response, Pi Network strongly denied the accusations, asserting that it remains a legitimate crypto project that has been under development for six years.
Bybit’s CEO statement gained significant traction for two reasons. First, Bybit has emerged as the second-largest crypto exchange by trading volume, making its opinions highly influential in the industry.
Second, his remarks coincided with a $1.4 billion hack on Bybit’s own exchange, shifting focus onto Pi Network amid heightened uncertainty.
Beyond the controversy, the Pi coin price also fell as many early adopters rushed to sell their holdings post-mainnet launch. Historically, pre-mainnet token holders often cash out quickly to avoid potential losses.
The situation was further compounded by a general lack of confidence, as similar “tap-to-earn” tokens—such as Notcoin and Hamster Kombat—have historically failed to recover after their initial launch crashes.
The broader market downturn also contributed to Pi Network’s struggles. Several recently launched cryptocurrencies have experienced similar fates, with notable tokens like Wormhole dropping from $1.6 to $0.18 and ZKsync falling from $0.2942 to $0.1.
Even high-profile projects like Eigenlayer have seen significant declines, falling from $5.6 to $2 in 2024. Meanwhile, meme coins associated with former U.S. President Donald Trump and Melania Trump have also plunged by over 80% from their peaks.
Adding to Pi Network’s woes is the ongoing weakness in the crypto market. Bitcoin has undergone a correction, dropping 10% from its all-time high, while major altcoins like Ethereum, Cardano, Algorand, and Near have also experienced double-digit pullbacks from their November highs.
The collapse of Pi Network’s price underscores the volatility and uncertainty that continues to shape the cryptocurrency industry. While the project insists on its legitimacy, investor confidence has been shaken, leaving the future of Pi Network hanging in the balance.