Pi Network Price Crash: 3 Key Reasons for the Plunge 🚨
Pi Network experienced a dramatic crash following its mainnet launch, wiping out around $6 billion in value within just two days. The token’s price plummeted from a launch price of $2 to about $0.76, leaving the crypto community in shock.
1. Scam Accusations 🤔:
Bybit CEO Ben Zhou publicly branded Pi Network as a scam after referencing a Chinese report alleging that the project targeted the elderly. Despite Pi Network’s firm denial and assertions of legitimacy, these accusations from the head of one of the largest crypto exchanges significantly undermined investor confidence.
2. Panic Selling by Early Holders 😱:
Many early supporters, known as pioneers, rushed to dump their tokens immediately after the mainnet launch. This pattern, common in tap-to-earn projects, was driven by fears of further devaluation, further accelerating the market downturn.
3. Downturn in Newly-Launched Tokens 📉:
The crash mirrors a broader trend seen with other recently launched tokens like Wormhole, ZkSync, and EigenLayer, which have similarly experienced steep declines post-airdrop. This overall bearish trend has added to the uncertainty around Pi Network’s future.
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