Pi Token Stuck In Liquidity Crisis

High valuation meets liquidity lows

TLDR:

• Pi Network's native token debuted at $1.70, surged to $2.00, then fell by 50%.

• Fully diluted value briefly reached $195B, but market cap is now about $6.1B.

• Minimal liquidity on exchanges like OKX means even small orders can trigger wild price swings.

• The token's referral scheme and lock-up period echo past viral projects.

In a roller-coaster launch that has left traders reeling, Pi Network’s native token made its debut this Thursday, igniting both excitement and concern. Pi, a project that claims 60 million users can mine cryptocurrency directly from their smartphones, started trading at $1.70 at 09:00 UTC and quickly climbed to $2.00—only to plummet by 50% within just two hours.

The initial frenzy sent the token’s fully diluted value (FDV) soaring to a jaw-dropping $195 billion, nearly double that of some established blockchains like Solana. However, with a self-reported circulating supply of just 6.3 billion tokens, the current market cap has settled around $6.1 billion.

Yet, despite this headline-grabbing valuation, there’s a darker side: liquidity. Even on OKX—the exchange known for handling high volumes—market depth is a mere 2%, meaning that an order of just $100,000 could significantly jolt the token’s price. “We’re essentially in a volatile environment where even small trades can cause massive price shifts,” noted one crypto market analyst.

Critics have compared Pi Network’s aggressive referral scheme to the infamous strategies of past viral tokens like SafeMoon. Users must be invited to join, and the system rewards both new sign-ups and the referrers who bring them in—a setup that many argue resembles multilevel marketing or even a pyramid scheme.

To counteract some of the inherent volatility and imbalance between buyers and sellers, Pi Network is offering a lock-up period of up to three years. Holders who opt to lock up their tokens can earn enhanced mining rewards, a tactic reminiscent of Richard Heart’s controversial HEX token, which infamously saw its value collapse by over 99% between 2021 and 2024.

In a statement, a spokesperson for Pi Network acknowledged the challenges ahead. “We’re excited about the potential of our community, but we also understand the concerns around liquidity and sustainable growth,” they said. “We believe that with time, improved market mechanisms, and responsible practices, Pi can overcome these early hurdles.”

As the Pi token continues its volatile journey, market watchers are keenly observing whether its innovative approach to smartphone mining and user incentives can translate into lasting success—or if it will fall victim to the same pitfalls that have doomed similar projects in the past.

photo / Blockonome