The Hype Backfires? Pi Network Token Price Plummets After Important Announcement

Immediately after Pi Network announced the launch of a 100 million dollar investment fund, the token price of this platform, Pi, has fallen by more than 25% within 24 hours, to 0.85 dollars. Pi Network Accused of Creating Hype to Boost Token Price On May 14, Pi Network announced the launch of a $100 million investment initiative aimed at boosting the utility and adoption of its native token. Measured in Pi and USD, the fund will invest in so-called innovative startups. This announcement, which had been in preparation for several weeks, helped push Pi beyond the $1.50 mark for the first time since March 16. However, immediately after the announcement, Pi plummeted, falling more than 25% in 24 hours to $0.85 at the time of writing on May 15, 2:16 AM Eastern Daylight Time (. According to Bitcoin.com News, the surge of Pi in the days leading up to the announcement had quickly propelled this token into the top 20 digital assets by market capitalization.

At that time, the price increase of the token was believed to be driven by speculation that it would be listed on Binance and a post by Pi Network on X promising an important announcement about the ecosystem. However, the token's lackluster price action following the announcement sparked controversy, with some observers accusing the Pi Network team of deliberately exaggerating the announcement. A user X named Dao World questioned the team's decision to create anticipation for just one announcement. This user shared their thoughts on why such a strategy could ultimately backfire. "In the cryptocurrency market, such timing and presentation can be counterproductive, especially if they do not meet the expectations of the community. This raises the question of whether the core team lacks the ability, or perhaps does not feel the need, to read the sentiments of the community," this user stated.

According to this user, this announcement could be received better if shared differently, perhaps along with other news or as a surprise release. Elsewhere on X, some users seem to express anger at Pi Network's decision, while one user warns that Pi may have a fall in the 24 hours following the announcement.

However, in an effort to soothe token holders, The Times of Pinetwork, a media platform supporting Pi Network, emphasized that the team's focus is on building the ecosystem rather than the price. Meanwhile, a post on X after the announcement stated that this newly launched investment fund is expected to drive innovation. "This strategic program aims to invest in startups and high-quality companies across various sectors, promoting innovation and ecosystem growth. By providing early support for the creation of more innovative utilities and real-world integration, this moment marks a significant step forward for Pi," the research team stated. According to Coingecko data on May 15, the market capitalization of Pi has fallen from over 9 billion dollars three days earlier to around 6.2 billion dollars. With this market capitalization, Pi has dropped out of the top 20 and is currently ranked 29th at the time of writing.