Pi Network Collapses 45% After Launching 100 Million Dollar Fund, Causing Severe Reactions from Investors

The latest funding initiative from Pi Network has caused unexpected chaos in cryptocurrency. The new $100 million fund of the project, aimed at supporting startups building with Pi Coin, has instead raised concerns among investors. Supported by 10 percent of the token allocation from the Pi Foundation, this fund is introduced to promote real-world adoption. It extends the Open Network phase, allowing Pi to interact with external systems for practical application. However, this announcement has caused the value of Pi to plummet, dropping over 45 percent and wiping out nearly 5 billion in market capitalization. Pi Coin dropped from $1.5 to around $0.88, removing it from the top 20 cryptocurrencies. The recent unlocking of 5.2 million tokens has added pressure for increased sell-off. Trading volume increased by 35 percent to $951 million, further increasing volatility. The community's disappointment is growing due to the lack of delivery. This fund is part of Pi's scaling strategy through user-driven business partnerships and innovation. While the core team focuses on funding startups, global users are encouraged to build through hackathon competitions and open development tools. However, many long-time supporters believe that this movement has stalled. According to cryptocurrency analyst Dr. Altcoin, this new fund feels like "a betrayal," especially as it has not achieved the promised key milestones. He emphasizes that after six years, the team has not delivered the 100 decentralized applications that were promised. Pioneers also raised concerns about insufficient token rewards, inconsistent communication, and transparency. Although they have participated and supported the network from the beginning, many users feel abandoned due to its scale, which has now reached around 70 million users. Conclusion Instead of boosting confidence, Pi Network's $100 million fund has increased market skepticism. The sharp price decline and growing user disappointment indicate profound challenges in turning Pi's vision into reality. Moving forward, trust and clear progress will be crucial to regain momentum.