The Pi Network token endured a brutal selloff this week, losing nearly half its value in a matter of hours.
Analysts point to a mix of structural weaknesses, leveraged trading liquidations, and shaken community confidence as key factors behind the drop.
Pi Network Liquidations Spark a Domino Effect
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According to Pi Network Update, the collapse was triggered by leveraged futures liquidations that set off a cascade of forced sales.
The initial selloff may have begun with only a few thousand PI coins changing hands on a smaller exchange. However, the thin liquidity proved enough to tip the market into freefall.
As of this writing, the PI coin price was $0.2751, down over 5% in the last 24 hours.
Pi Network (PI) Price Performance. Source: TradingViewSponsored
The commentary highlights a persistent issue facing Pi coin. A vast supply of tokens remains locked or unmigrated.
This overhang continues to pressure sentiment, leaving the project more vulnerable to sudden price shocks.
Some analysts also compared Pi to Bitcoin, with Jatin Gupta, a builder and pioneer, acknowledging that Pi coin price tends to mirror Bitcoin’s corrections. However, Gupta warned that its drawdowns are typically far sharper.
The remarks mirror a growing concern among traders that Pi lacks the resilience of more established assets, often falling faster and harder during downturns.
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Pi Network Founders Debut, But Fail to Reassure Pioneers
Ironically, the crash occurred the same day Pi Network’s two founders made their first public appearance at a community event in Seoul.
While some attendees expressed optimism about the gathering, it failed to generate any positive momentum for the token’s price.
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Critics like Mr. Spock emphasized the deeper issue, highlighting a disconnect between Pi’s community narrative and trading activity.
The episode highlights Pi Network’s fragile position. Despite an active community and a now public visibility of its leadership, the token remains exposed to thin liquidity, speculative trading, and doubts about real adoption.
The challenge for long-time miners and holders is whether Pi can transition from hype to substance, and based on social media sentiment, the market verdict is harsh.
Until the network addresses structural issues, the long-term trend remains tilted downward, but investors should also conduct their own research.
Source: https://beincrypto.com/pi-network-crash-structural-weakness-founders-debut/
