Pi fell by 50 percent: Low liquidity and shaken community trust

The Pi Network token has suffered a brutal sell-off this week, losing nearly half of its value in just a few hours.

Analysts point to a combination of structural weaknesses, liquidations through financial leverage, and shaken community trust as key factors behind the decline.

Liquidations of the Pi network trigger a domino effect

According to Pi Network, the collapse was triggered by leveraged futures liquidations that initiated a cascade of forced sales.

The initial sell-off may have started with just a few thousand PI tokens. However, weak liquidity proved sufficient to tilt the market into free fall.

– The crash of Pi on the 1-minute chart. It’s never just one thing. Leveraged futures are being liquidated, causing a cascade of sales. The initial drop may have been caused by the sale of just thousands of Pi on a small exchange. As long as the system does not flush out OG miners and billions of un-migrated Pi, the long-term trend is down – shared the team behind the project on X.

At the time of writing, the price of the PI token was $0.276, a drop of over 5 percent in the last 24 hours, but 22 percent in the last 7 days.

The comment highlights a persistent problem that Pi faces. A huge supply of tokens remains locked or un-migrated. This fact continues to pressure sentiment, leaving the project more vulnerable to sudden price shocks.

Some analysts have also compared Pi to bitcoin, with Jatin Gupta, one of the developers, acknowledging that the price of Pi reflects corrections in bitcoin. However, Gupta warned that declines for Pi are usually far sharper.

The remarks reflect growing concern among traders that Pi lacks the resilience of more established assets, which often fall faster and harder during downturns.

Founders debut, but fail to convince the community

Ironically, the drop occurred on the same day that two founders of Pi Network made their first public appearance at a community event in Seoul.

Although some participants expressed optimism about the gathering, it failed to create positive momentum for the token price.

Critics like Spock emphasized a deeper issue, highlighting the disconnect between the Pi community and trading activity.

– This is why Pi Network is failing. It’s a community project, but the community does not believe that Pi on exchanges is real. That’s why Pi could crash to zero. Most of the Pi community is not buying Pi, and that’s why I stopped promoting Pi Network as much as I used to – wrote Spock.

The episode underscores the fragile position of Pi Network. Despite an active community and now public visibility of its leadership, the token remains exposed to weak liquidity, speculative trading, and doubts about real adoption.

The challenge for long-time miners and holders is whether Pi can transition from hype to substance, and based on social media sentiment, the market judgment is harsh.

As long as the network does not address structural issues, the long-term trend remains tilted downward, but investors should also conduct their own research.