Chinese aunts and grandpas are losing their dream of getting rich! PI currency crash and plummets by more than 45%. Beware of oversupply of token issuance

PI coins plummeted by more than 45%, and the dream of "Chinese aunties and uncles" getting rich is shattered!

On Friday, February 21, PI coin crashed, with prices plummeting by more than 45%. Previously, Pi Network officially opened its main network, and PI coins fell rapidly after a brief rise on the OKX exchange, disappointing many investors who hope to get rich overnight. Analysts warn that if demand cannot meet supply, future token issuance may bring greater pressure.

The pyramid scheme model of PI coins is controversial. Pi Network claims that everyone can participate and can "mine" and make profits with just a mobile phone, attracting a large number of Chinese investors. Pi Network has shifted from closed testing systems to open blockchain, enabling transactions outside the ecosystem.

This transformation aims to expand the use of PI coins and accessibility of external platforms. The Pi Network team said that the open network will allow PI coins to connect to the external network on the main network blockchain, thereby enabling transactions outside the ecosystem and paving the way for exchange listing and decentralized application integration. However, the issue of project legality remains a huge challenge.

After going public, PI coins soared 45% to US$2.10, and the trading volume soared by more than 1,700%. However, this wave of rise was short-lived, with PI currency plummeting more than 52% in a few hours, falling to $1.01 and its market value fell to $7.02 billion, raising concerns about long-term price stability.

The total supply of PI coins is 9.7 billion, and the full dilution valuation (FDV) is approximately US$83.07 billion. Analysts pointed out that if demand cannot keep up with supply speed, future token issuance will bring further downside risks.

Since its inception in 2019, Pi Network has attracted tens of millions of users, aiming to be a mobile-friendly cryptocurrency alternative. Supporters believe that the launch of open networks is an important step towards wider application.

However, uncertainty remains. Critics point out that issues such as unclear token economics, potential regulatory hurdles and lack of confirmation of exchange listings may limit the long-term development of PI coins.

In addition, the legal and regulatory issues of PI coins have always attracted much attention, and many major exchanges have rejected their listing applications. Binance eventually decided to go public through a community vote, but the approval rating (85%) did not eliminate the uncertainty of the project. The project was identified as a "scam" by law enforcement in 2023, aggravating market concerns.

Pi Blockexplorer data shows that the current supply of PI coins is as follows:

• Total mining reward (migrated): 6.307 billion
• Current lock-in mining reward: 4.711 billion
• Unlocked circulating supply: 1.595 billion
• Displacement supply: 6.307 billion
• Total supply: 9.703 billion
• Maximum supply: 100 billion pieces

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