#pi $PIXEL As of March 2025, Pi Network has recently experienced severe price fluctuations, with the sharp decline and rebound after the mainnet launch sparking widespread discussion. Based on search results, here is an in-depth analysis of the decline of Pi Network and future outlook:
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### I. Core Reasons for Price Decline
1. Selling pressure from early miners
After the mainnet launch, early miners who accumulated tokens over several years can finally trade freely, leading to a massive sell-off. Statistics show that the circulation rapidly increased to 5.56 billion tokens at the initial stage of the mainnet, but actual demand failed to follow, resulting in an imbalance of supply and demand that directly caused the price to be halved (from a peak of $1.97 to $0.7).
2. Lack of support from mainstream exchanges
At the early stage of Pi Network's launch, it did not receive support from top exchanges like Binance and Coinbase, and insufficient liquidity limited new investors' entry, exacerbating price volatility. Although platforms like OKX announced trading, market confidence remains in question.
3. Inflated market expectations and speculative behavior
Before the mainnet launch, the price of over-the-counter (OTC) futures contracts was speculated to be as high as $200, creating a huge gap with the actual market price (around $1.6), leading to panic selling by investors after their expectations were dashed.
4. Insufficient ecological applications
Although Pi Network has over 60 million registered users, only about 15% of active users have actually migrated to the mainnet and completed KYC, and there is a lack of effective decentralized applications (dApps) and payment scenarios within the ecosystem, limiting the token's practicality.
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### II. Market Controversies and Risk Factors
1. Concerns about the pyramid scheme model
Pi Network has rapidly expanded through an 'invitation fission + tiered income' mechanism, criticized by regulators and industry insiders as a 'Ponzi scheme' or 'pyramid selling'. For example, users are accused of relying on community fission rather than actual value contribution to increase mining speed.
2. Team transparency issues
The Pi Network team has long failed to disclose core member information, and the mainnet progress has been delayed multiple times, leading to a trust crisis. Some users question whether the project side artificially creates scarcity by controlling token circulation.
3. Regulatory risks
Regulatory authorities in several countries, including China, have warned about the risks of Pi Network, indicating it may involve illegal fundraising and fraud. For example, in 2022, the Nantong police explicitly reminded the public to be cautious of the risks of Pi Network mining.
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### III. Potential Influencing Factors on Future Price Trends
1. Listing on exchanges and improvement of liquidity
If Pi Network can get listed on mainstream exchanges like Binance, it may attract more capital inflow and stabilize prices. However, the current market is skeptical about the sustainability of exchanges' 'pump' actions.
2. Ecological construction and enhancement of token utility
Pi Network plans to expand its application scenarios through merchant access and cross-chain cooperation. If the ecosystem can land (such as supporting barter trading or DeFi applications), the demand side may alleviate the selling pressure.
3. Token unlocking and inflation pressure
The total supply of Pi Network is 100 billion tokens, with significant long-term inflation risks. If the pace of token unlocking goes out of control in the future, prices may come under further pressure.
4. Market sentiment and speculative funds
The overall market trends in the cryptocurrency market (such as Bitcoin bull markets) will affect Pi Network's short-term performance. There are still some 'believers' in the community who insist on holding, but the withdrawal of speculative funds may lead to severe fluctuations.
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### IV. Suggested Strategies for Investors
1. Prudent risk assessment
Currently, the price of Pi Network is highly volatile and lacks fundamental support, investors should be wary of market manipulation and liquidity risks, avoiding blind chasing of highs.
2. Focus on core indicators
- Trading volume and turnover rate on exchanges;
- Progress of mainnet migration and KYC completion rate;
- The actual landing situation of ecological applications.
3. Diversified investment and long-term perspective
If optimistic about Pi Network's potential, small position layouts and attention to team dynamics are recommended, but it should be combined with diversified asset allocation to hedge risks.
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### Summary
The sharp decline of Pi Network reflects the conflict between its early model and market reality. Although the community's ability to split has accumulated a large user base, the lack of actual value support and transparent mechanisms remains a critical flaw. Whether future prices can rebound depends on ecological construction, exchange support, and the resonance of market sentiment. Investors need to remain rational amidst enthusiasm and skepticism, participating in this high-risk game in a controllable manner.
