Once the news broke, the price of PI plummeted again, which was somewhat expected.
The team behind this controversial project hinted at an upcoming announcement last week, leading many to speculate that it could be the listing of PI on Binance.
That is not the case. Instead, the team announced a $100 million plan to invest in startups, but after the recent hype-driven surge, the price of the native token immediately crashed.
Major Announcement
On May 8, the official X channel behind the project (which has over 4.3 million followers) announced that a major ecosystem announcement would be made on May 14. Although no further details were provided, the community began speculating on various options, with the possibility of a Binance listing being the most significant, as some members claimed the exchange had already attempted backend PI deposits and withdrawals.
However, it will still take time to list on the world's largest cryptocurrency exchange, as the actual statement released yesterday had nothing to do with any trading platform. The team announced the establishment of Pi Network Ventures, a $100 million PI and dollar initiative that will invest in "startups and businesses that drive PI usability and practical applications."
As usual, the comments below the post were divided, with some praising this as "huge" for the entire PI ecosystem, while others criticized it as just "another statement of what they plan to do, rather than what they have done or are doing."
PI Dump
After the first tweet was released last week, the project's native token price soared. In less than a week, its price nearly doubled, surging from $0.6 to over $1.7. However, this surge driven by hype came to an abrupt halt, and it is currently below $0.9.
This seems to be a classic case of "buy the rumor, sell the news," where asset prices soar before actual news is released, but plummet after the announcement. PI has dropped 28% in the past 24 hours and has shrunk by 50% since hitting a local high a few days ago.
