Pi Network’s Price Slides Despite $100 Million Fund Launch
Pi Network’s price took a hit, falling over 13% after the Core Team unveiled a $100 million ecosystem fund. The Pi Coin (PI) price dipped to $1.06, marking a 35% drop from its recent peak. This fund aims to support startups using Pi’s technology, targeting sectors like retail adn finance.
Investors were initially excited about the fund, but the reality didn’t meet their expectations. The market cap slid to $7.5 billion, down from $10 billion. The fund, called Pi Network Ventures, will back projects that use Pi’s tech. However, the market reacted negatively, pushing the coin’s value down.
Why did this happen? One reason is the “buy the rumor, sell the news” effect. People frequently enough buy assets before big announcements and sell once the news is out.
Another factor is the fund’s delayed impact. It will take months for funded projects to launch, and there’s no guarantee they’ll attract users.This uncertainty disappointed investors who hoped for quicker results.
Many also expected a listing on major exchanges like Coinbase or binance. Such a move would have boosted the token’s value by opening it to millions of new traders. A token burn to address supply concerns was another missed opportunity.
Lastly, Pi Coin’s decline mirrors the broader crypto market’s weakness. Bitcoin’s drop to $103,300 and the overall market’s 0.6% fall to $3.34 trillion didn’t help. In a downturn, recent winners often become the biggest losers.
Despite these setbacks, Pi Network’s fund could still foster a robust ecosystem. Only time will tell if it meets its goals.
