Pi Network, the smartphone mining project that claims to have 60 million users, launched its native Pi token on Thursday that offers merchants a roller coaster that saw the price increased by 18% in minutes before falling 50% in the next two hours.
Pi debuted to $ 1.70 at 09:00 UTC, increasing up to $ 2.00. Recently it was quoted at $ 0.97. The initial increase sent the totally diluted value (FDV) up to $ 195 billion, almost twice the sun value of the Solana block chain.
The FDV is based on the maximum supply of a Token, 100 billion in this case. The self -informed circulating supply is 6.3 billion, which puts its market limit at around $ 6.1 billion.
Pi Network has made comparisons with viral projects of previous cycles, including Safemoon, which also attracted a retail audience with aggressive marketing and reference schemes.
For users to begin to extract the token pi on a mobile device, they must first receive an invitation from another user. Then they are issued an invitation code that they can share. More tokens are rewarded for each user referred to, creating an ecosystem that reflects multilevel marketing (MLM) or pyramidal schemes.
The project has existed since 2019 with its live testnet in 2020. The launch token is the beginning of the Network Network Pi Mainnet, which means that all accumulated tokens can be transferred and negotiated.
However, exchanges currently lack sufficient liquidity to handle billions of tokens that are marketed. In fact, even the most liquid exchange, OKX, has a market depth of 2% of between $ 33,000 and $ 60,000. That means an order of, for example, $ 100,000 would move the price significantly, creating a volatile commercial environment.
The depth of the market measures the amount of capital required to move an asset in any direction. Based on Token market capitalization, a 2% movement would be equivalent to a change of $ 146 million in the project value.
Pi Network has tried to remedy a disparity between buyers and vendors by offering the headlines a period of “blocking”, which can be up to three years. If the headlines choose to block their tokens, they will receive more mining rewards. A similar approach was used by the controversial Token Hexadecimal of Richard Heart, which lost more than 99% of its value between 2021 and 2024, which makes many of the blocked chips have no value.
