**Key Takeaways**
– Pi Network’s token, PI, has plunged over 90%, erasing nearly $18 billion in market capitalization and fueling fresh rug pull claims.
– Without addressing community concerns and supply growth issues, PI could remain under downward pressure in the coming months.
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**Why Is Pi Network Facing Rug Pull Claims Again?**
Since its debut in March, the Pi Network [PI] price has crashed over 90%, reigniting allegations that the project might be a rug pull. At launch, the price soared to $2.79, pushing the market capitalization to approximately $18 billion amid a wave of FOMO (Fear Of Missing Out). However, the price has since slipped below $1 and plunged further to around $0.26, wiping out more than $16 billion in market cap over the past six months.
A pseudonymous crypto market commentator known as Mr Spock weighed in on the situation, stating, “Pi crashed over 90% from its highest position, that’s basically a rug pull.”
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**Hype and Speculative Interest Fade**
Back in May, Pi Network faced similar rug pull accusations after the team allegedly established a $100 million venture fund amid more than six years of unmet expectations and broken promises. Many community members believed that this fund—partly sourced from internal revenue and mining activities—was diverted for external purposes rather than being reinvested into the ecosystem.
This backlash contributed to the token’s inability to rebound in May, dragging the price down below $0.50. Despite the sour market sentiment, data from Pi Scan indicated some continued accumulation of PI tokens. Over the past 24 hours alone, a net flow of $112.3 million was recorded, meaning more PI tokens flowed out of exchanges than into them, which suggests buying activity.
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**Derivatives Data Show Collapse in Speculative Interest**
Despite signs of accumulation, speculative interest has sharply declined. While there has been some improvement in the futures market demand, overall speculative interest dropped by more than 10 times. According to Glassnode, PI’s Open Interest (OI)—the total value of open contracts in the derivatives market—plummeted from nearly $120 million to about $20 million.
This sustained bearish pressure reflects the community’s growing frustration and feeling of being sidelined by the Pi Network team.
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**Inflationary Pressure Weighs on Price**
Another major factor dragging down PI’s price is inflationary pressure. Since May, the circulating supply of PI tokens has surged by over 1 billion tokens, exacerbating downward price pressure.
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**What’s Next for PI?**
Unless the Pi Network team addresses community concerns and carefully manages token supply growth, PI could continue to face heavy downward pressure. Rebuilding trust and stabilizing the token economy will be critical to any future recovery efforts.
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*Stay tuned for updates on Pi Network and other cryptocurrency developments.*
https://ambcrypto.com/pi-network-sheds-18b-in-six-months-thats-basically-a-rug-pull
