The Rise and Fall of Pi Network: How a Promising Crypto Crumbled Under Market Reality

By Epiphanus Obia

When Pi Network launched in 2019, it promised a revolutionary approach to cryptocurrency mining—one that didn’t require expensive hardware or high electricity consumption. Instead, users could mine Pi simply by tapping a button on an app daily. This low-barrier entry attracted millions of users, making it one of the most downloaded crypto-related apps worldwide. But as the network transitioned to its Open Mainnet, the initial excitement quickly gave way to skepticism, price volatility, and a massive sell-off.

The Pyramid-Like Referral System

One of the earliest red flags was Pi’s referral-based mining structure. Unlike traditional proof-of-work or proof-of-stake models, Pi’s distribution relied heavily on user invitations. The more people you invited, the higher your mining rate—a classic structure found in multi-level marketing (MLM) schemes.

Critics argue that this incentivized users to promote Pi without fully understanding its economic model. Many early adopters aggressively recruited others under the belief that Pi would one day be valuable. However, with no clear utility or liquidity in the early years, the entire system functioned on future promises rather than tangible value.

This approach led some to question whether Pi Network was ever designed to succeed as a legitimate cryptocurrency or if it was merely a cleverly disguised growth-hacking strategy benefiting early adopters.

The Open Mainnet and the Harsh Reality of Liquidity

For years, Pi operated in a closed ecosystem, meaning users could not freely trade or withdraw their tokens. This created an illusion of scarcity and value. Some over-the-counter (OTC) markets even facilitated unofficial Pi transactions at inflated prices, with users treating it as an asset waiting to be unlocked.

But when Pi’s Open Mainnet finally launched, the reality hit hard. Many users, eager to convert their accumulated tokens into real money, flooded the market with sell orders. With minimal real demand to counterbalance this supply surge, the price of Pi crashed almost immediately.

This is a common phenomenon in speculative markets. When a token’s price is artificially sustained by hype rather than fundamental value, a crash is inevitable once liquidity enters the system. The same pattern has been observed in numerous overhyped Initial Coin Offerings (ICOs) and meme coins.

Is There Hope for Pi?

Despite the price crash, Pi Network still commands a massive user base. If the project can build real-world applications and partnerships, it might regain investor confidence. The challenge, however, lies in proving that Pi has genuine utility beyond being a speculative asset.

Right now, Pi faces a crucial test: Will it evolve into a sustainable cryptocurrency with real-world adoption, or will it become another cautionary tale of how hype and network growth alone cannot sustain long-term value?

The major questions remain; Has Pi Network already peaked, or can it make a comeback?