Pi Network, a smartphone mining project boasting 60 million users, launched its native PI token, which initially had a fully diluted value (FDV) soaring to $195 billion.
The token started trading at $1.70 at 09:00 UTC, climbed to $2.00, then plummeted 50% within two hours. It is now valued at $0.97, as the FDV temporarily approximated double that of Solana’s SOL.
- Key Facts:
- The FDV relies on a maximum supply of 100 billion tokens.
- The circulating supply is reportedly 6.3 billion, leading to a market cap of around $6.1 billion.
Critics have drawn parallels to previous viral tokens like SafeMoon, especially due to its referral system benefiting early adopters. To mine the PI token, users require an invitation from another participant, facilitating a structure reminiscent of multi-level marketing schemes.
Despite its debut, liquidity concerns loom large, as leading exchanges struggle to manage the influx of traded tokens. OKX, for instance, reports a 2% market depth with a trading requirement between $33,000 and $60,000—creating significant price fluctuations for larger transactions. To mitigate supply-demand discrepancies, Pi Network offers a lock-up period for token holders, potentially enhancing their mining rewards.
