Why Does Pi Network's Price Keep "Diving"?

According to data from CoinMarketCap, the Pi Network coin is trading around 0.64 USD on the evening of June 2nd. The current price of the Pi coin has fallen nearly 60% compared to the mid-May period. Since mid-May, the PiCoreTeam has continuously announced a series of information regarding the development of the Pi Network ecosystem. These moves were initially expected to serve as a driving force for the project, thereby causing the price of Pi Network to grow.

However, the users’ reactions were completely opposite. According to the assessment from Crypto News, the PiCoreTeam has not met the expectations of the Pi Network community. Most users are waiting for the Pi Network project to be listed on major exchanges like Coinbase, Binance, or HTX, which could positively impact the value of the Pi coin. Another group of users is looking forward to the project team announcing a “burn” of some of the Pi Network’s supply, in order to decrease the supply, create scarcity, and enhance the value of the project. However, the information provided by the PiCoreTeam is completely unrelated to what the community is expecting. This factor has led to disappointment among many people, resulting in mixed reactions and negatively impacting the price of Pi Network. Meanwhile, data from PiScan indicates that the project will unlock a massive amount of up to 246 million tokens on the exchange in the next 30 days. Notably, nearly 14 million Pi Network coins will be listed on the exchange on June 11. A sudden increase in supply could create strong selling pressure. In the event that buying demand is insufficient to absorb the new supply, the price of Pi Network may continue to fall sharply. This is also the reason why the price of Pi Network has been “struggling” in recent times. Not stopping there, experts also believe that the Pi Network coin currently does not hold much intrinsic value. The Pi coin is assessed as having no specific applications and lacks a solid infrastructure. The Pi Network team only promotes Pi as a means of payment. This causes the project to not create much real value and only operates like a series of memecoins (joke cryptocurrencies) in the market. In March, the Hanoi City Police issued a warning to the public regarding investments in the Pi Network cryptocurrency. The authorities stated that according to Vietnamese law, virtual currencies in general and the Pi coin in particular are not yet considered assets. According to the Hanoi City Police, the Pi coin has no practical application yet. Its current value is self-assessed and misleads many people about the true value of this cryptocurrency.