Can Pi Network rebuild user trust after Pi Coin plummets 78% just weeks post-launch, with more token unlocks and delays looming?
From a top 10 contender to a steep decline
In February, Pi Network (PI) made headlines with an excitement that many cryptocurrencies only aspire to. The eagerly awaited mainnet launch of Pi Network finally took place, and just days later, the token skyrocketed, hitting an all-time high of $2.98 on February 26.
For a fleeting moment, it even slipped into the top 10 cryptocurrencies by market capitalization, sharing space with the industry’s leading players. Fast-forward to April 2, and the situation appears considerably less appealing.
As of now, Pi Coin is trading at a mere $0.66, marking a staggering 78% drop since its peak just over a month ago. This decline has eliminated approximately $14.5 billion in market capitalization, plummeting its total value from around $20 billion to just $4.56 billion.
The situation appears even more concerning when considering upcoming events. More than 124 million Pi tokens are scheduled for unlocking this month, according to PiScan, and this is only the beginning.
Monthly token unlocks will continue to rise, peaking at 233 million in July. In total, over 1.53 billion new tokens are expected to enter circulation in the next year, raising the total supply to 8.2 billion.
This is an enormous increase for a network that currently has a supply of 6.7 billion and aims for a maximum cap of 100 billion. At this rate, Pi is quickly establishing itself as one of the most inflationary digital assets available.
Meanwhile, support from exchanges remains inconsistent. OKX was the initial major platform to list Pi, followed by Bitget, Gate.io, and MEXC, with Gate.io currently leading in trading volume.
However, the token has yet to be featured on most tier-1 exchanges. Binance, Coinbase, Kraken, and Bybit have all opted out, with Bybit’s CEO even labeling Pi a “scam,” a characterization the developers vehemently reject.
So, what is truly unfolding behind the scenes at Pi Network? And with more tokens poised to flood the market, what can investors anticipate in the near future? Let’s delve into the details.
Issues, delays, and roadblocks
At the core of Pi Coin’s dramatic price decline is a web of internal conflicts—issues that stem more from operational failures than from market sentiment.
A major pain point is a single bottleneck: KYC (Know Your Customer) verification. This critical process, which verifies user identities, has turned into a frustrating ordeal for the vast user base of Pi Network.
This step is mandatory. Without it, users cannot transfer their mined Pi tokens to the mainnet, which effectively means no transactions, no withdrawals, and no access to the value they believe they have accrued.
Reports suggest that even after the Open Network launched on February 20, and the extended KYC and migration grace period until March 14, the Pi Core Team has struggled to address the backlog affecting its estimated 60 million-plus users.
The transition from the third-party provider Yoti to a proprietary KYC system was intended to enhance scalability, yet technical issues—like “Tentative Approval” statuses that halt progress—have left many users in a state of uncertainty.
Some estimates indicate that only about 14 million users have successfully transitioned, revealing a significant capacity challenge.
Social media, especially X, is rife with testimonials from Pi users facing this malfunctioning experience.
One user recounted that her Pi coins were initially designated as migrated, only to be unexpectedly returned without explanation, placing her in a cycle of reconfirmations and waiting.
Another individual reported losing 1,427 Pi tokens simply because their migration didn’t finalize before the grace period expired, despite being in the queue the entire time.
Such stories have fueled frustration and worry, particularly among those who invested years mining the token with the hope of future accessibility. Compounding the backlash is the lack of communication. The Pi Core Team has remained tight-lipped.
There has been minimal transparency regarding vital facets of the roadmap. Users lack clear updates on validator incentives, the status of dApp development, or even the fate of the funds from Pi’s domain auction.
While reality may be less dramatic, the lack of steady communication is allowing speculation to fill the void. One user frankly stated, “Getting to new highs from here might be really difficult.”
Activity presents a different narrative
Pi Network’s latest effort to showcase real-world application occurred during PiFest, a global merchant initiative held from March 14 to March 21. Advertised as a campaign to promote everyday adoption, the event aimed to illustrate practical uses of Pi, from groceries to clothing, car repairs, and digital services.
On paper, the reported numbers appeared impressive. Over 125,000 merchants registered, including 58,000 active sellers, and around 1.8 million Pioneers took part. However, despite the scale, actual network activity contradicted these claims.
On-chain data reveals that payment volume showed little increase during the event. As one user observed on X, “The number of payments during the current #PiFest has not increased significantly,” indicating that many users were reluctant to spend their tokens or preferred to hold on to them amidst the uncertainty regarding Pi’s future.
This hesitation showcases deeper flaws within the ecosystem. Pi had previously pledged to create a wide array of decentralized applications to keep users engaged beyond mere mining and peer-to-peer transfers.
However, external analyses reveal that only a limited number of dApps are currently operational, and those that do exist lack significant functionality when compared to platforms like Ethereum or Solana. Without a robust application layer, there’s minimal motivation for regular token utilization.
One flagship strategy was the anticipated integration with Telegram’s crypto wallet. Initially set as a move to broaden outreach, the initiative has yet to produce any substantial engagement or tangible results.
Additionally, emerging privacy concerns are coming to light. Pi’s KYC system relies on a community-driven model where users verify one another through selfie videos and ID checks.
While this approach aimed to enhance accessibility, it carries inherent risks. If redactions fail, personal data could be exposed, prompting growing worries among users.
Combined, Pi’s ecosystem still feels like a work in progress. Until the platform can align real incentives for merchants, boost user confidence, and introduce functional applications, mainstream adoption will likely remain out of reach, regardless of the number of users onboarded.
A pivotal moment ahead
Pi Network is entering what many in the cryptocurrency space describe as a crucial utility phase. This stage is where excitement alone can no longer sustain value; instead, real-world application, developer engagement, and ecosystem robustness will determine whether a project prevails or fades.
History has provided numerous cautionary examples. Initiatives that failed to advance beyond this phase, such as BitConnect and OneCoin, along with more reputable names like NEM and Verge, ultimately crumbled due to a combination of grand promises and disappointing outcomes.
The cycle often repeats itself, beginning with initial user enthusiasm and rapid valuation growth, followed by execution delays, leading to increased skepticism and waning trust.
For investors, the upcoming months are critical. Pay attention to on-chain activity. Monitor how many wallets are genuinely migrating, keep tabs on token unlock timelines, and avoid overinterpreting price fluctuations without proper context.
Unless Pi can demonstrate authentic user engagement, better token management, and a more established ecosystem, any short-term recovery is unlikely to be sustainable. As always, exercise caution in the market and never invest more than you can afford to lose.