- Pi Coin price nosedives after $100M VC fund news, users furious over lack of DApps.
- Frustration grows as 5.2M coin unlock hits market, reward system slammed by early supporters.
Pi Coin fell 33% hours after its parent company, Pi Network, announced that it had created a $100 million venture capital fund. This move was followed by broad criticism among its users, who grew frustrated over the fact that, after years, no decentralized applications still work.
Earlier this week, the token traded at $1.56, taking its market capitalization to $11.07 billion and surpassing Litecoin and Bitcoin Cash. The price trend was, however, short-lived. Pi Coin has since then dipped 41% from that peak, wiping off nearly $5 billion from its capitalization within three days.
Currently, Pi Coin is trading at $0.9160, down 25% in the last 24 hours. Volumes jumped 12.76% to $865 million. Analysts attribute the selloff over the last few days, however, as much to the announcement as to a 5.1 million coin unlock that imposed pressure on the market.
$100M VC Fund Triggers Outcry from Community
The Pi Core Team’s announcement regarding “Pi Network Ventures,” a $100 million venture capital fund for funding startups to develop applications on its network, was unable to calm the community. Rather, it drew fury. Members expressed outrage over the lack of functioning DApps on the network, years after development and community backing.
“Today the Pi Core Team announcement about Pi Network Ventures is nothing short of a betrayal to the Pioneer community, the very people who built this project from the ground up over the past six years,” said Dr. Altcoin, a well-known crypto analyst.
He believed that through six years of waiting, the Core Team has still failed to fulfill its promise of 100 working DApps when it was first set. The announcement of the fund was seen as a departure from what the community’s priorities were.
Community Support Declines Amid Reward Concerns
As per Dr. Altcoin, over 94% of users could not get 1,000 Pi tokens as a reward for being part of them early, as they had poor reward policies. He added that the referral bonus system was ineffective and left the early supporters high and dry.
This is not just unfair; it’s a clear sign that the community’s efforts have been undervalued,
He referred to the 70 million users on the platform, spread over 200 countries, and the much of dissatisfaction. He also questioned the leadership’s refusal to speak out for the protection of user interests.
The silence from the Pi Core Team on protecting the interests of its community is deafening. Pioneers are not just users — we are the stakeholders, the foundation, and the reason Pi Network exists,
As the dust settles, investors expect the price volatility to continue. The recent 5.1 million coin unlock has only contributed to short-term volatility. Some traders are still skeptical as to whether or not Pi Coin can bounce back to $1 again.
