Pi Network’s token debuts at $195B almost double the value of SOL

The PI network, which released its native token yesterday to its 60 million users, has gained more ground as it recorded a high of $2. The fully diluted value (FDV) reached as high as $195 billion during the initial rise, almost twice the value of the Solana blockchain’s SOL.

The FDV is based on the maximum supply of a token, which in this case is 100 billion. It says that there are 6.3 billion in circulation, which gives it a market value of about $6.1 billion.

The project has been ongoing since 2019, and the testnet will go live in 2020. The token release marks the beginning of the Pi Network’s mainnet, which means that all tokens can be sold and transferred.

PI has gained traction because its mining is done on mobile devices. This has inspired millions of people to join the crypto trend without having to buy expensive hardware. PI blends social interaction, developer tools, and real-world applications.

Users must first get an offer from another user before they can start mining the Pi token on their phone. After that, they are given an invite code that they can use to invite others. More tokens are given to users who bring in new users, creating an ecosystem that mirrors multilevel marketing (MLM) or pyramid schemes.

Meanwhile, there has been $34.81 million worth of trades in Pi in the last 24 hours, and the price is now $0.91. In the last day, Pi has gone down by 88.41%. The price has dropped 99.53% from its best point last week, which was $183.49. However, it’s only 8.29% above its lowest point in the same week, which was $0.8478.

Exchanges that have adopted Pi coins

Several centralized exchanges have confirmed their support for Pi Coin. It will be listed on OKX, Bitget, Bitrue, and BitMart.  Bitget also revealed an airdrop pool of $60,000 Pi for eligible users.

Bitget said,  “Based on their engagement and exchange activities, different amounts of PI coins will be airdropped to users.”  Meanwhile, BitMart is offering a $3,000 USDT Pi giveaway to 300 selected users.

While these deals get people excited, Binance has done something different. The exchange is having a unique community vote to decide if Pi Network should be listed. The results should be known by February 27.

However, not all exchanges are embracing Pi. HTX recently delisted Pi Network’s IoU (I owe You) token, which contributed to a price drop of over 50%. Traders used this token to speculate on Pi’s value before the official launch.

Many people have become very interested in the Pi Network. Google Trends shows that searches for “Pi Network” have hit their highest point, with 100 results. In addition, Pi Network has surpassed 110 million installations, with an average of 110,000 new downloads per day.

Currently, Pi Network has outpaced major blockchain networks, including Ethereum and BNB Chain, in follower count. Crypto analyst Kim H Wong noted, “Pi Network is quickly becoming one of the most discussed blockchain projects among top cryptocurrencies.”

What might lead the price of Pi to crash?

Early users have been patient and worked hard to get a lot of PI coins. Therefore, those who mined Pi coins early could be the first to sell them. They might want to sell some of their tokens to lock in gains, especially if they think the price on the initial market will go up because of all the talk and speculation.

As history dictates, every coin project that starts with an “airdrop” does not last long. Most users rush to sell tokens or coins as soon as the trade starts when they are given away for free. What’s different about Pi coins? A lot of people will try to sell the coin to get their money quickly.

At the moment, exchanges don’t have enough cash to handle the billions of tokens being sold. Even OKX, the most active exchange, has a 2% market depth of $33,000 to $60,000. In other words, an order of, say, $100,000 would cause the price to change a lot, making trades very risky.

Let’s face it: the Pi network isn’t very useful in real life. Aside from peer-to-peer trades, no other use case has been properly looked into. Yes, some dApps are being made for the apps, but not many, and most people don’t know about them.

A crash is coming soon if the Pi Network ecosystem doesn’t build a strong network of decentralized apps (dApps) and partnerships that make people want to buy Pi coins.

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