PI Token Drop Sparks Doubts About The Project

Launched as a promise of crypto democratization via mobile, Pi Network today faces its greatest turbulence. As its Pi token dangerously approaches its historic lows, more than 126.6 million new tokens are set to be released in April. This puts additional pressure on an already weakened asset, despite a massive community and stated ambitions. In a market that has become ruthless, the illusion of success is no longer enough: the Pi ecosystem is wavering, and doubts are settling in.

A programmed inflation : when supply exceeds demand

For several weeks, the Pi token has been trading at critical levels. According to data published by CoinMarketCap, its price stands at $0.6414, very close to its historic floor reached on February 20 at $0.6152.

This bearish dynamic is directly correlated to a now-structural phenomenon: the monthly release of new tokens. Indeed, more than 126.6 million PI tokens are expected this month, representing nearly 1.87% of the circulating supply.

This aggressive unlocking policy feeds constant selling pressure. Thus, as analyst Alex Obchakevich summarizes:

Monthly unlockings exceed demand, which greatly affects the value of the token.

The phenomenon fits into a much broader dynamic, which has intensified since the mainnet launch. Data provided by PiScan confirms a strategy of continuous offer release :

• 4.9 billion Pi tokens have already been released to date ;
• 1.54 billion additional tokens are expected to be unlocked in the next twelve months ;
• On average, 133 million tokens are released each month ;
• In this month of April, 126.6 million tokens will be added to the existing supply.

This inflationary pressure adds to still limited adoption. The arrival of PI on Bitget, OKX, and MEXC exchanges, which marked the end of a long period of trading restrictions, did not stop the decline.

On the contrary, it facilitated the massive outflow of freshly released tokens, which further accentuated the drop in price. The economic equation of the project now seems unbalanced, pulled between supply growth and increased demand weakness.

A project under pressure : between technological ambitions and growing distrust

Beyond market dynamics, Pi Network also faces increasing criticism regarding its business model and legitimacy. While the project claims an innovative approach (based on a mobile application and a simplified mining mechanism through daily check-ins), it remains at the center of controversies.

In February, Ben Zhou, CEO of the Bybit exchange, publicly questioned the very nature of the project: “Yes, I still think you are a scam, and no, Bybit will not list you.” This particularly virulent statement has rekindled suspicions surrounding a project that relies on a referral model encouraging viral expansion, without clear evidence of concrete use cases or effective decentralization.

Despite these criticisms, some analysts continue to see Pi Network as an underutilized potential. Alex Obchakevich believes that the project “has the potential to one day compete with the top ten cryptos,” provided it strengthens its development and the adoption of its network.

The founding team, which comes from Stanford University, still relies on a massive community base to launch the ecosystem. However, in a market where competition is fierce and financing conditions are stricter, promises are no longer enough to convince.

The current situation thus presents a strategic dilemma: continue to play the community card with incentive mechanisms, or pivot towards more technical development focused on real utility. Thus, the future of Pi Network could depend on its ability to move out of ambiguity and deliver a tangible product. Without this, distrust could well take over and lead to a sustained correction, which would lead to a slow but irreversible erosion of the project’s credibility.