Pi Network Price Drops 54% After $100 Million Fund Announcement Disappoints Investors

TLDR

Pi Network experienced a 54% price decline in one week, falling from a high of $1.61 to around $0.71 The drop followed announcements of a $100 million ecosystem fund and “ownerless” Pi Foundation that disappointed users expecting actual applications Community trust is eroding amid allegations of insider token sales and lack of transparency Despite the crash, analysts predict potential gains of 250% in the coming months Pi Network continues to face challenges with exchange listings, KYC limitations, and questions about when promised applications will launch

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Recent Market Movements and Ecosystem Announcements

Pi Network has experienced a dramatic price decline of 54% over the past week, marking the steepest weekly drop among the top 100 crypto assets. The token had surged from $0.78 on May 11 to peak at $1.61 on May 12, representing a 106% increase within just 24 hours. This rally was driven by excitement surrounding Pi Network’s upcoming appearance at Consensus 2025 and hints at a major ecosystem update.

However, the momentum quickly reversed. Following the May 14-15 announcement of a $100 million ecosystem fund, sentiment shifted dramatically. The price fell to $0.68 by May 18, a nearly 58% drop from the May 12 peak. As of May 19, PI was trading around $0.71, reflecting a modest 4.4% recovery from recent lows.

Pi Network
PI Price

The token is now consolidating under key resistance levels, with analysts watching for a potential breakout. Pi Coin has rallied over 45% from its May 17 low of $0.6595, but is encountering stiff resistance around the $0.75 mark, having failed multiple times to break through the $0.752-$0.754 barrier.

Technical Analysis and Price Patterns

Technical indicators show a mixed picture for Pi Network. A symmetrical triangle has formed on the 4-hour chart, reflecting tightening consolidation just below a descending trendline from the recent local high. This setup, combined with compressed Bollinger Bands and falling volume, points to an imminent breakout.

The price is currently caught between rising support at $0.71 and resistance at $0.75, with analysts suggesting a decisive move could occur within the next 24 to 48 hours. A bullish breakout above $0.754 could send Pi Coin surging to $0.80 or even $0.90, while failure to hold above $0.707 might drag the price back to the $0.685-$0.673 support zone.

Short-term indicators offer little clarity on direction. The RSI on the 30-minute chart hovers at 47.8, just below the neutral 50 mark, while the MACD histogram remains flat, suggesting a market in wait-and-see mode.

Project Development and Community Concerns

In early May, Pi Network completed the shutdown of its last remaining central node as part of the Horizon upgrade, framed as a step toward decentralization. The team also signaled plans to open-source its codebase, something community members have been requesting for years.

On the accessibility side, Pi partnered with Banxa to integrate fiat onramps into the app, allowing users to buy PI using traditional payment methods like credit cards and Apple Pay or Google Pay. This service became available even before users completed the in-app know-your-customer process.

The key announcement on May 14 was the launch of Pi Network Ventures, a $100 million investment fund aimed at supporting ecosystem development. Alongside this, the team introduced the concept of an “ownerless” Pi Foundation for long-term governance. While structurally important, neither initiative included a timeline for the launch of widely usable applications.

This disappointed users who had been mining Pi for years with the expectation of real-world usage. In February, the team had suggested that over 100 decentralized applications would accompany the Open Network launch. As of now, aside from experimental events like a Pi domain name auction or a small-scale shopping festival, working applications remain limited.

Further disappointment followed Pi’s appearance at the Consensus 2025 conference. During a keynote, founder Dr. Nicolas Kokkalis discussed long-term visions involving artificial intelligence, digital identity, and decentralized finance, but did not provide a roadmap or dates.

Trust Issues and Allegations

The past week has seen not only Pi Network’s price fall sharply but also a visible breakdown in trust within its user base. As the price corrected, community sentiment across platforms like Discord and X turned openly critical.

On May 17, an X user known as Dr. Picoin posted blockchain screenshots claiming that a Pi core team-linked wallet moved 12 million PI tokens close to the time when the token reached its recent high. The implication was that core contributors may have offloaded holdings at elevated prices before the broader community had a chance to react.

Though the claims remain unverified, they triggered concern. The wallet address in question had been previously identified by some as a standard distribution wallet used to transition balances from testnet to mainnet. Some Pi supporters argued that the allegations were based on a misreading of blockchain data.

The core team has not issued a formal response to the allegations or provided clarity on the disputed wallet activity.

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