Pi Coin Faces a Dramatic Freefall Post-Mainnet Launch
In a shocking turn of events, Pi Coin’s much-anticipated mainnet launch has led to a staggering 66.35% crash in its price. Initially buoyed by excitement, the token surged 36% to reach $1.99 within the first hour of trading. However, as profit-taking set in, panic selling erupted, driving the altcoin’s value down to a mere $0.67. Early investors are now left reeling, grappling with unrealized losses while awaiting their tokens to migrate fully to the mainnet.
Frustration Rises Among Investors
One frustrated investor took to Twitter to vent his concerns: “Why aren’t my coins in my wallet? I finished all mainnet checklists months ago?” This sentiment echoes the feelings of many who are anxious about their token status amidst the chaos surrounding the launch.
Trading Volume and Exchange Controversies
In the wake of this volatility, a staggering $1.37 billion in trading volume shifted over a 24-hour period. However, the anticipation quickly morphed into skepticism when Bybit, a major cryptocurrency exchange, refused to list Pi Coin. Bybit’s CEO, Ben Zhou, has previously voiced concerns regarding Pi Network’s legitimacy, labeling it a potential scam after receiving an official warning from Chinese authorities. Zhou’s criticism highlights ongoing controversies surrounding the project, characterized by opaque operations and a recruitment model that bears resemblance to a pyramid scheme.
Adding fuel to the fire, Zhou tweeted: “Here is an official police warning of $Pi from Chinese police back in 2023 warning to the public that it’s a scam targeted towards elderly folks, which leaks their personal data and loss of their pension.” Such allegations only deepen the mistrust surrounding Pi Coin.
Valuation Discrepancies and Accessibility Issues
The token’s launch has triggered additional backlash due to stark valuation discrepancies and accessibility complications. Prior to its official listing, unofficial markets reported Pi tokens trading at astonishing heights of over $70. However, when it finally debuted on centralized exchanges at $1.97, the reality hit hard, unveiling a staggering $180 billion fully diluted market valuation. The resulting liquidity crisis left many investors desperate and unable to liquidate their holdings.
Social media has been inundated with complaints as users reported being locked out of trading due to unresolved Know Your Customer (KYC) issues, with some waiting for verification for years. As trading commenced, the backlash was immediate and overwhelming, with many investors left feeling betrayed.
Price Analysis: Can Pi Network Bounce Back?
Despite the turmoil, a glimmer of hope remains for Pi Coin traders. Major centralized exchanges such as OKX, Gate.io, MEXC, and Bitget have quickly listed the token, prompting a question: can these exchanges revive the asset’s momentum? Furthermore, a recent poll showed an overwhelming 86% of respondents favoring a listing on Binance—the world’s preeminent crypto exchange—with the poll set to close on February 27.
As technical indicators provide a mixed outlook, some traders are cautiously optimistic. The Relative Strength Index (RSI) has stabilized at 20, significantly below the overbought threshold of 30, suggesting that selling pressure may be waning. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is on the verge of forming a bullish “golden cross,” hinting that buyers may soon regain control.
For the short term, the critical support level at $0.62 needs to hold firm to prevent further declines, as the token enters a phase of price discovery.
Future Outlook: Navigating a Volatile Market
Investors are becoming increasingly cautious in a landscape riddled with rug pulls and devastating sell-offs, which are unfortunately common for newly launched coins. This environment makes it challenging to identify opportunities with the potential for remarkable gains.
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The non-custodial wallet supports over 1,000 cryptocurrencies and employs Fireblocks MPC-CMP technology. With a staking aggregator designed to optimize yield opportunities, Best Wallet has already raised a staggering $10.3 million in its presale for the new $BEST utility token. Its app is featured on both Google Play and the App Store, positioning it as a robust option for traders looking to stay ahead of market movements.
Why This Matters
The rollercoaster ride of Pi Coin serves as a cautionary tale for investors in the crypto space. As the market continues to evolve, staying informed about token legitimacy, operational transparency, and potential risks is crucial for navigating this volatile landscape.
Expert Opinions
Industry experts are weighing in on the situation, with many emphasizing the importance of conducting thorough due diligence before investing in new tokens. The developments surrounding Pi Coin underscore the necessity for investors to be vigilant and to question the legitimacy of projects, especially those that appear too good to be true.
Conclusion
The future remains uncertain for Pi Coin as investors watch closely for further developments. Whether the asset can recover from its catastrophic drop hinges on forthcoming exchange listings, market sentiment, and the underlying project’s ability to deliver on its promises.