The long-awaited launch of Pi Network’s Open Mainnet triggered sharp price movements for its native token, Pi (PI), on Feb. 20, as early enthusiasm gave way to a swift sell-off.

Pi Network, which allows users to mine crypto via a mobile app without energy-intensive hardware, transitioned from a closed beta system to an open blockchain, enabling transactions beyond its ecosystem.

The shift is expected to expand the token’s real-world use and increase its accessibility on external platforms. Pi Network’s development team said in a statement:

“The transition to Open Network will enable Pi to connect with external networks on the Mainnet blockchain, allowing users to conduct transactions outside the Pi ecosystem.”

The upgrade also paves the way for potential exchange listings and integration with decentralized applications. However, the road remains fraught with challenges due to uncertainty around the project’s legality.

Crash after surge

Following the announcement, Pi surged 45% within an hour, reaching a high of $2.10, while its trading volume spiked over 1,700% as speculation around the launch fueled a buying frenzy.

However, the rally was short-lived. Within hours, Pi plunged more than 52% to a low of $1.01, wiping out gains from earlier in the day. The token’s market capitalization fell to $7.02 billion, raising concerns about long-term price stability.

With a total supply of 9.7 billion tokens, Pi’s fully diluted valuation (FDV) currently stands at approximately $83.07 billion.

Analysts warned that future token releases could introduce additional downward pressure if demand fails to keep pace with supply.

Uncertainty remains

Since its inception in 2019, Pi Network has attracted tens of millions of users, positioning itself as a mobile-friendly alternative to traditional cryptocurrencies. Supporters believe the Open Network launch marks a major step toward broader adoption by enabling real-world transactions.

Despite the optimism, uncertainty remains. Critics point to unclear tokenomics, potential regulatory hurdles, and the absence of confirmed exchange listings as challenges that could limit Pi’s long-term viability.

Meanwhile, its history of legal and regulatory troubles has also raised concern in the industry, with several major exchanges denying its listing application. Binance eventually let the community vote on the matter, which resulted in an 85% favorable outcome for Pi.

However, the community support does not alleviate the uncertainty around the project, which was labelled a scam by law authorities as recently as 2023.

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