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As of March 2025, Pi Coin (Pi Network) has recently experienced drastic price fluctuations, with a sharp drop and rebound after the mainnet launch sparking widespread discussion. Based on search results, here is an in-depth analysis of the decline of Pi Coin and future outlook:

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### **1. Core Reasons for the Price Plummet**
1. **Selling Pressure from Early Miners**
After the mainnet launch, early miners who had accumulated tokens for years were finally able to trade freely, leading to massive sell-offs. Statistics show that the circulating supply surged to 5.56 billion tokens shortly after the mainnet opened, but actual demand did not keep pace, causing a supply-demand imbalance that directly led to the price halving (falling from a high of $1.97 to $0.7).

2. **Lack of Support from Major Exchanges**
At the initial stage of Pi Coin's launch, it did not receive support from top exchanges like Binance and Coinbase, and insufficient liquidity limited new investors from entering, exacerbating price volatility. Although platforms like OKX announced the launch of trading, market confidence remained in question.

3. **Inflated Market Expectations and Speculative Behavior**
Before the mainnet launch, the price of over-the-counter (OTC) futures contracts was hyped up to $200, creating a huge gap with the actual market price (around $1.6), leading to panic selling when investors' expectations were dashed.

4. **Insufficient Ecosystem Applications**
Although Pi Network has over 60 million registered users, only about 15% have actually migrated to the mainnet and completed KYC, and the ecosystem lacks effective decentralized applications (dApps) and payment scenarios, limiting the token's usability.

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### **2. Market Controversies and Risk Factors**
1. **Pyramid Scheme Allegations**
Pi Coin has rapidly expanded through an “invitation-based sharing + tiered rewards” mechanism, criticized by regulators and industry insiders as a “Ponzi scheme” or “pyramid scheme.” For example, the model where users increase their mining speed by bringing in new users is said to rely on community sharing rather than actual value contribution.

2. **Team Transparency Issues**
The Pi Network team has long been opaque about the information of core members, and the mainnet progress has been delayed multiple times, leading to a crisis of trust. Some users question whether the project team is artificially creating scarcity by controlling token circulation.

3. **Regulatory Risks**
Regulatory authorities in several countries, including China, have warned about the risks of Pi Coin, pointing out that it may involve illegal fundraising and fraud. For example, police in Nantong clearly advised the public to be wary of the risks associated with Pi Coin mining in 2022.