Pi Network’s token, PI, is dangerously close to its all-time low as a substantial number of tokens are about to enter circulation. With over 126.6 million PI tokens scheduled to unlock this month, representing nearly 1.87% of the current supply, the price is feeling the pressure, currently hovering around $0.6722—not far from February’s record low of $0.6152.
Alex Obchakevich, founder of Obchakevich Research, pinpoints the continued token unlocks as the culprit. According to Obchakevich, these monthly unlocks are outpacing demand, an “inevitable” situation that “greatly affects the value of the token.” Data indicates the network has already unlocked 4.9 billion PI tokens, with another 1.54 billion slated to be released over the next year, at an average rate of 133 million per month.
This price dip echoes the slump seen after Pi Network’s mainnet launch in February, an event that finally permitted the token to be listed on exchanges like Bitget, OKX, and MEXC, after a period of restricted trading. Despite the current bearish trend, Obchakevich suggests Pi Network still has potential, proposing they “focus on project development now to increase usage and interest” to compete with top-tier projects, especially given the current market’s instability and competitive landscape.
Launched in 2019 by Stanford University graduates, Pi Network operates as a mobile-first blockchain where users earn Pi coins simply by checking into the app daily. Its growth strategy relies on a referral system. However, the project isn’t without its detractors; Ben Zhou, CEO of ByBit, has publicly labeled Pi Network a “scam,” stating definitively, “Bybit will not list scam.”