TLDR
- Pi Network (PI) has plunged 50% in 24 hours, trading at around $0.84 despite announcing a $100 million venture fund
- The Pi Network Ventures fund aims to support startups in AI, gaming, FinTech, e-commerce, and blockchain
- Community members expressed feelings of “betrayal,” claiming the core team neglected early supporters
- Pi Coin’s market cap fell by nearly $5 billion, dropping out of the top 20 cryptocurrencies
- Technical indicators show a neutral to bullish bias with PI trading above key moving averages
Pi Network’s native token (PI) has experienced a sharp decline, dropping more than 50% in the past 24 hours. The cryptocurrency was trading at $0.8405 at press time, despite what many would consider positive news from the project’s team.
On May 14, the Pi Foundation announced the launch of Pi Network Ventures, a $100 million fund designed to support startups building on the network. The initiative will function similarly to a traditional venture capital firm.
The fund plans to focus on startups across multiple sectors. These include generative AI, gaming platforms, FinTech solutions, e-commerce businesses, and social media platforms, in addition to blockchain-native companies.
“Pi Network Ventures plans to support not only blockchain-native startups, but also a wide array of businesses in generative AI, gaming platforms, FinTech, ecommerce, embedded payments, marketplaces, social networks, and other real-world applications,” stated the Pi Foundation.
Despite what appears to be a major development, the market reacted negatively to the news. Pi Network dropped from a daily high of $1.30 to a low of $0.8552 before settling near $0.92.
PI Network $PI is nearing support at $0.79 📊
If that breaks, the range POC + trendline at $0.65 is a big level of support 📈
Bulls need the trendline to hold for more upside 🟢 pic.twitter.com/nWo76TzDrF
— Trader Edge (@Pro_Trader_Edge) May 15, 2025
The sharp drop suggests that the announcement may have fallen short of market expectations. Many traders had possibly anticipated a major exchange listing, which would have brought real liquidity and improved price discovery to the token.
Community Backlash
The price drop coincides with growing frustration within the Pi Network community. Some members have expressed feelings of “betrayal” over the lack of functioning decentralized applications (DApps) on the platform despite years of promises.
Dr. Altcoin, a prominent voice in the Pi Community, criticized the core team’s announcement: “Today the Pi Core Team announcement about Pi Network Ventures is nothing short of a betrayal to the Pioneer community, the very people who built this project from the ground up over the past six years.”
Today the Pi Core Team announcement about Pi Network Ventures is nothing short of a betrayal to the Pioneer community, the very people who built this project from the ground up over the past six years.
We waited, we believed, and we contributed under the promise that time was…
— Dr Altcoin (@Dr_Picoin) May 14, 2025
He further claimed that the core team has neglected early community members and undervalued their contributions. According to his statement, more than 94% of Pioneers who helped build and sustain the network failed to acquire 1,000 Pi tokens due to the team’s policies regarding referral bonuses.
The Pioneer community consists of approximately 70 million members across 200 countries. These early supporters feel their efforts have been undervalued as the project pursues its global ambitions.
PI’s market capitalization has taken a substantial hit. After reaching $11.12 billion earlier this week and briefly overtaking established cryptocurrencies like Litecoin and Bitcoin Cash, Pi Coin has lost nearly $5 billion in valuation over just three days.
Another factor contributing to the recent price volatility may be a 5.2 million token unlock, which has put additional selling pressure on the market.
From a technical perspective, PI shows mixed signals. The token is trading above important moving averages, including the 50-day simple moving average and the 10-day exponential moving average, both of which indicate buy signals.
The relative strength index stands at 57.24, suggesting a neutral market position with some indecision. However, the moving average convergence divergence points to short-term bullish potential.
If PI holds above the $0.85 support level, there could be a recovery toward $1.10. However, if it drops below this support, a retest of the $0.74 area may occur.
The current price of PI is $0.8881, with daily trading volumes increasing by 35% to $951 million.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
