Pi Network, Once a Hyped Cryptocurrency, Is Now in Deep Trouble

Pi Coin, once one of the most hyped cryptocurrencies, is now in deep trouble. After launching its mainnet in February

Pi Coin, once one of the most hyped cryptocurrencies, is now in deep trouble. After launching its mainnet in February with high hopes, the price skyrocketed to $2.98, briefly making it one of the top ten cryptocurrencies. But fast forward to April, and things have taken a complete U-turn. The price has crashed to just $0.67, marking a massive 78% drop in just a few weeks. Investors who believed in its promise are now watching billions of dollars in value disappear, with Pi’s market cap shrinking from nearly $20 billion to just $4.56 billion.

Pi Coin’s price has plunged to $0.6722, narrowly avoiding slipping below its all-time low of $0.6152 reached in February. The rapid decline follows its meteoric rise to $2.98 on Feb. 26, when Pi briefly shot up into the top 10 cryptocurrencies by market cap. However, the hype quickly fizzled out.

Now, with the market cap shrinking from nearly $20 billion to just $4.56 billion, investors are losing confidence.

Alex Obchakevich, founder of Obchakevich Research, attributes the crash to an imbalance between token unlocks and demand. He warns that with Pi’s monthly unlocks outpacing demand, further price declines are “inevitable.” So far, 4.9 billion Pi tokens have entered circulation, and another 1.54 billion are set to be released over the next year.

However, beyond the price drop, another major issue is plaguing Pi Network: its KYC (Know Your Customer) system. Unlike other cryptocurrencies, Pi requires users to verify their identity before they can move their tokens to the mainnet. But this process has become a source of frustration for many.

Out of 60 million people who mined Pi, only 14 million have successfully migrated their tokens. Social media is filled with complaints about failed transactions and missing coins, while the developers remain largely silent, further fueling distrust.

Recently, Pi Network tried to boost adoption with “PiFest,” an event encouraging businesses to accept Pi Coin. While they claim over 125,000 merchants participated, blockchain data suggests that very few transactions actually took place.

Without real-world use cases and a strong ecosystem, Pi is struggling to prove its worth compared to major networks like Ethereum and Solana.

Despite these struggles, Obchakevich sees long-term potential. He believes Pi could still compete with top projects—if it focuses on real development. However, skepticism remains high. ByBit CEO Ben Zhou has even labeled Pi a “scam,” casting further doubt over its legitimacy.