Pi Network, the smartphone extraction project which claims to have 60 million users, published its native pi token on Thursday offering traders a roller coaster tour which saw the price increase by 18% in minutes before tumbling 50 % over the next two hours.
PI made its debut at $ 1.70 at 9:00 am UTC, reaching up to $ 2.00. It was recently negotiated at $ 0.97. The initial overvoltage sent the fully diluted value (FDV) up to 195 billion dollars – almost double the value of the solana blockchain solan.
The FDV is based on the maximum offer of a token, 100 billion in this case. The supply of self -declaced traffic is 6.3 billion, which puts market capitalization at around $ 6.1 billion.
Pi Network made comparisons with viral projects from previous cycles, notably Safemoon, which also attracted a retail audience with aggressive marketing and reference diagrams.
In order for users to start using the Pi token on a mobile device, they must first receive an invitation from another user. They then receive an invitation code that they can share themselves. More tokens are rewarded for each referral user, creating an ecosystem that reflects marketing patterns on several levels (MLM) or pyramid.
The project has existed since 2019 with its online test in 2020. The Token version marks the start of the PRI network, which means that all accumulated tokens can be transferred and exchanged.
However, exchanges are currently lacking sufficient liquidity to manage the billions of chips exchanged. In fact, even the most liquid exchange, OKX, has a market depth of 2% between $ 33,000 and $ 60,000. This means that an order, let’s say, $ 100,000 would considerably move the price, creating a volatile trading environment.
The depth of the market measures the amount of the capital required to move an asset in both directions. Based on the token market capitalization, a 2% decision would be equivalent to a change of 146 million dollars in the value of the project.
Pi Network tried to remedy a disparity between buyers and sellers by offering holders a period of “locking”, which can reach three years. If holders choose to lock their tokens, they will receive higher mining rewards. A similar approach was used by the controversial hexadecimal token by Richard Heart, who lost more than 99% of its value between 2021 and 2024, making many of the tokens locked without value.
