Pi Coin Has Experienced a Sharp Decline in Its Market Value, Losing Over 13% in a Single Day

Pi Coin has experienced a sharp decline in its market value, losing over 13% in a single day and accumulating a weekly loss of more than 34%.

Pi Coin (PI) price tumbled 13% in a 24-hour period on Thursday, bringing its weekly losses to more than 34%, bringing it closer to the $1 mark, according to the latest data from CoinMarketCap.

The new lows pushed the token out of the crypto top 20 ranking. It now trades at $1.06, at a trading volume of $665 million.

The recent crash in Pi Coin price comes amid rumors about delays in listing on Binance and the lack of a clear roadmap for the launch of its mainnet.

These two factors have brought some pressure on investor confidence in the project, which had generated high expectations since its inception.

However, a recent report by the founder of CyberCapital, Justin Bons, brought up some critical insights about the project, which could be a reason for the pessimistic outlook on the token.

Is Pi Network a Scam?

In a lengthy post on X, previously Twitter, Bons, a well-known figure in the crypto sphere, shared his thoughts on why he believes Pi Network is a scam.

According to him, the project is not decentralized, despite its claims, and relies on a pyramid scheme-like model for mining.

“It’s 2023 and they require ‘identity verification’ for any transactions. They are still in closed beta, yet have 10M+ ‘miners’ and 3B+ transactions. It’s a Stellar chain with no new tech to speak of and can’t even do DeFi well,” he stated.

According to Bons, Pi Network is a scam and it’s a shame that people are still discussing if it’s a good project.

His claims sparked a heated discussion among crypto enthusiasts. Some agreed with Bons’ critical assessment, highlighting their own concerns about Pi Network’s lack of transparency and the suspicious nature of its token economics.

Those critical of Pi Network pointed towards the fact that the project has faced skepticism from influential figures in the crypto industry, such as Konstantin Stanislavsky, head of institutional crypto at StarkWare, and traders like "The Chart Guy."

According to them, Pi Network's model is not sustainable in the long term and is likely to lead to disappointment for investors.

Those on the side of the Pi Network project pointed out that it is still under development and has encountered some delays, which could be contributing to the pessimistic sentiment. They also highlighted the large and active community that is involved in the project.

What is Pi Coin and how does it work?

Pi Network is a cryptocurrency project that is developed by a team of Stanford graduates. The project was launched in 2014 with the aim of creating a cryptocurrency that can be used by billions of people worldwide.

Pi Coin is the native cryptocurrency of the Pi Network ecosystem. It is a layer-1 blockchain powered by Stellar. It is designed to be used for a variety of purposes, such as peer-to-peer payments, online purchases, and tipping.

Those who want to mine Pi Tokens must use the official application, which can be downloaded on iOS and Android devices. According to the platform, over 10 million people have joined the project so far.

In addition to the mainnet launch, another big event that is expected to boost Pi Coin price is its listing on a major cryptocurrency exchange.

Earlier this year, Pi Token was among the most voted assets to be listed on Binance. However, despite the high demand from the community, the exchange decided not to include it in its listing.

After announcing that it would not be including any new tokens on its Spot market, Binance faced a backlash from the crypto community, who accused the exchange of being unresponsive to user feedback.

Following the backlash, Binance is planning to introduce a new listing pressure sanction system. According to the exchange, users who engage in pressure tactics or use abusive language toward Binance employees or other community members will be subject to sanctions.