The unexpected downfall of Pi Network: Investors lose big

The price of Pi Network's cryptocurrency has plunged dramatically over the past few days, leaving investors reeling from significant losses. Once trading between $1.5 and $1.7, Pi has now plummeted to around $1.1–$1.2 and shows no signs of bouncing back.

Many investors who bought Pi at higher prices are now facing substantial financial losses. L.H., an investor from Ho Chi Minh City, admitted that his portfolio had lost nearly half its value, amounting to a loss of approximately $8,000.

He initially bought Pi at $2.5 and continued averaging down when the price fell to $1.5, but with the coin now trading at $1.17, his hopes of recovery are fading.

Similarly, H.Q. shared that he had invested when Pi was priced at $1.5, confident it would rebound to $2. Instead, he is now staring at a loss of $3,000.

Many investors, lured by community hype and promises of price surges, are now questioning their next steps as market sentiment grows increasingly bearish.

Why Pi’s price keeps dropping

The primary driver of Pi’s collapse appears to be a combination of fading investor confidence and declining trading volumes. Data from CoinMarketCap shows that trading volume dropped by 33% over the past 24 hours, while the market cap now stands at $7.98 billion, with around 6.8 billion Pi in circulation.

On various Pi Network forums, calls to buy more tokens to prop up the price are frequent, but experts warn that this approach only offers short-term stability.

According to a crypto analyst, the fundamental problem is that many in the Pi community are overly focused on mining and waiting for liquidity rather than understanding market trends and risks.

The analyst noted that Pi’s ecosystem remains underdeveloped despite initial promises from the project team. Even with the recent launch of the .pi domain sales to recapture Pi tokens and support the coin’s value, the initiative has had little impact on stabilizing the price.

Expert advice: Be cautious with Pi investments

Market experts caution against making significant investments in Pi at this time. One financial consultant compared investing in Pi to "walking on a tightrope," given the lack of clarity from the development team and the substantial volume of Pi tokens under their control.

“If you’re mining Pi for free, it’s relatively low-risk. However, actively buying into Pi on exchanges right now is highly speculative and dangerous,” he advised.

Adding to the uncertainty, the State Bank of Vietnam has repeatedly warned about the risks of trading cryptocurrencies, emphasizing that transactions involving Bitcoin and other digital assets are not legally protected. The lack of a clear legal framework around cryptocurrencies in Vietnam further compounds the risks for investors.

With no concrete recovery in sight and the ongoing volatility in Pi’s value, many investors are left wondering whether they should cut their losses or hold out for a potential comeback.

Tam An