Pi Coin Crashes 62% After Open Mainnet Launch, Here's Why

Pi Coin, the cryptocurrency of the Pi Network, has seen a sharp decline in value after the launch of its highly anticipated Open mainnet.

The price of Pi Coin (CRYPTO: PI) has fallen sharply following the launch of its highly anticipated Open mainnet.

On debut, PI has traded on OKX for roughly around $1.50. However, the price quickly dropped by over 62%, falling to approximately $0.6655.

Why Is Pi Coin Crashing?

Despite the immense hype surrounding pi coin, it has not yet generated any profits for early buyers. Since the launch, all pi coin has seen is red candles. Let's examine the potential causes for this.

1. Early Miners Selling Holdings

A primary factor contributing to the price decline is that early adopters who mined Pi at minimal or no cost are now selling their large holdings. Given that Pi was untradable for years, many miners managed to accumulate significant amounts. The launch of the open mainnet has enabled them to finally cash out, increasing supply and driving down prices.

2. Lack of Major Exchange Listings

While platforms like OKX and Bitget have listed Pi Coin, it is yet to be available on top-tier exchanges such as Binance or Coinbase. Notably, Pi Coin has not been listed on Binance because it does not currently meet the exchange's listing criteria.

This limited visibility, reduces liquidity and hampers efforts to attract new investors. Without strong exchange support, Pi struggles to generate high-volume trading activity.

3. Overhyped Pre-Market IOU Prices

Prior to the open mainnet launch, Pi IOUs (futures contracts on Pi Coin) were trading at highly inflated prices, with some reaching $200 on BitMart. Many investors anticipated that the real market price would be comparable, leading to unrealistic expectations. However, once actual trading commenced, the price quickly adjusted to more sustainable levels, disappointing investors who had purchased at higher prices.

4. Limited Real-World Use Cases

Although Pi Network boasts a vast user base, its ecosystem is still in early stages of development. There are few decentralized applications (dApps) built on Pi, and it has yet to establish strong use cases beyond peer-to-peer transactions. Without major integration into payment services, gaming or DeFi, demand for Pi remains limited.

What's Next for Pi Coin?

If Pi Network secures major exchange listings, expands its ecosystem and enhances utility, demand could increase. However, continuing sell-offs by early miners, coupled with a lack of robust demand, may drive prices to much lower levels.

To anticipate future performance, investors are advised to monitor trends in exchange listings and project collaborations.

Also Read: Bitget and OKX users Unable to withdraw Pi coin for now