Pi Network just made a big wave with the launch of Pi Network Ventures – an investment fund worth 100 million USD aimed at promoting the ecosystem and increasing the practical application of the PI token. Is this a turning point for a project that was once doubted, or just a new trick?
100 Million USD Investment Fund: A New Momentum for the Ecosystem
#PiFoundation , the organization behind Pi Network, has announced the launch of Pi Network Ventures with a capital of 100 million USD, including PI tokens and cash. This fund is drawn from 10% of the PI supply allocated for ecosystem development, focusing on supporting projects built on Pi or contributing to the growth of the network. The goal is to enhance the practical value of PI through products, services, and transactions.
#PiNetworkVentures will invest from the seed stage to Series B, even accompanying startups in the growth stage afterward. The fund aims to create a loop of innovation – application – expansion for the Pi blockchain, supporting potential founders. Notably, the fund is not limited to Web3 but also extends to other technology fields such as:
Artificial Intelligence (AI) and AI applications.
Fintech along with integrated payment solutions.
E-commerce and marketplaces.
Social networks along with practical consumer applications.
The Pi Foundation is committed to operating in the style of Silicon Valley, with a strict selection process to seek out startups with breakthrough potential, increasing recognition and influence.
Context of Controversy and Challenges
The launch of the fund comes amid a wave of skepticism from the community. Pi Network has been criticized for a lack of transparency, with a sparse white paper and undisclosed internal financial information. The reward mechanism based on user referrals has been compared to a multi-level marketing model, raising questions about its legality. The PI token also faces significant volatility, having dropped more than 50% since the mainnet launched at the end of February, currently trading over 25% below its nearly 3 USD ATH peak.
Nevertheless, PI has recently experienced impressive growth of 160%, from 0.62 USD to 1.52 USD, indicating investor expectations. However, listing on major exchanges still faces obstacles. Bybit, through CEO Ben Zhou, called PI a 'scam' and refused to list it, citing warnings from Chinese police in 2023. Binance, despite surveying the community with 86% agreement on February 28, remains silent after nearly 3 months, not making any decisions.
Impact and Prospects
The 100 million USD fund is Pi Network's effort to prove that PI is not just a 'useless' token. With crypto fund inflows reaching 3.4 billion USD last week and projected to accumulate 330 billion USD into Bitcoin by 2029, along with Ethereum (2,500 USD) and other altcoins, this move could attract more quality projects. In the next 1-2 years, if PI increases practical applications through startups in AI, fintech, or e-commerce, the ecosystem could break through.
However, success depends on addressing transparency concerns and achieving listing on major exchanges like Binance. The recent price increase is a positive signal, but volatility remains a significant risk.
Conclusion: Is Pi Network Ready to Change?
Pi Network Ventures with a fund of 100 million USD is a bold move to increase practical applications and expand the PI ecosystem. Despite facing criticism and challenges for listing, the project is striving to change its image from doubt to potential. With a diverse strategy and support for startups, Pi Network can make breakthroughs, but investors need to closely monitor to assess effectiveness.
Risk warning: Investing in cryptocurrency carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.
