Pi Network Sparks Controversy: Pi Token Plunges 25% After $100M Investment Fund Announcement
From Hype to Disappointment – Investors Panic After Pi’s Sharpest Drop Since March
On May 14, Pi Network sent shockwaves through the crypto community by announcing a $100 million investment fund to promote its ecosystem and drive real-world utility for its native Pi token. However, just 24 hours later, Pi crashed over 25%, falling from a peak of $1.50 to $0.85 as of early May 15 (EDT), according to CoinGecko data.
Pi Network Accused of Hyping Up Token Before Dumping
Prior to the announcement, the Pi token surged dramatically, even briefly entering the top 20 cryptocurrencies by market cap, fueling speculation about a potential Binance listing or a game-changing announcement.
However, when the news turned out to be an investment fund for startups, many accused Pi Network of deliberately generating FOMO to pump the price before dumping.
A user on X, Dao World, commented:
“This kind of anticipation-building can backfire in crypto if it doesn’t live up to expectations. It seems the Core Team either misread or ignored the community’s sentiment.”
Immediate Impact: $3 Billion Wiped Out, Pi Falls from Top 20
Within just 3 days, Pi Network’s market cap dropped from $9 billion to around $6.2 billion, pushing Pi down to 29th place on CoinGecko’s rankings.
This sharp decline raises questions about transparency and the Pi Network team’s media and investor relations strategy during sensitive market moments.
Pi Network Responds: “We’re Focused on Ecosystem, Not Token Price”
In an effort to calm the backlash, Pi Network and its affiliated media outlet The Times of Pi Network emphasized that the team’s mission is ecosystem growth—not short-term price movements.
“This strategic investment program aims to fund innovative startups and real-world use cases for Pi. It’s a major step forward for our ecosystem,” the team stated on X.
Conclusion: Can the $100M Fund Restore Trust?
The dramatic price drop following a major announcement has divided the crypto community. Some view it as a buying opportunity, while others fear it’s just another hype-driven bubble. With Web3 competition heating up, Pi Network must go beyond promises — it needs clear execution and transparency.
What do you think about this drop? Is Pi Network building long-term value or just playing the hype game?
Join the discussion in the comments below!
