PI Network, the smartphone mining project, which claims to have 60 million users, released its original PI-Token on Thursday, giving dealers a roller coaster that saw the price rise 18% in minutes before tumbling 50% over the next two hours.
PI debuted with $ 1.70 at. 09:00 UTC and rose to as high as $ 2.00. It traded recently with $ 0.97. The original wave sent the fully diluted value (FDV) to as high as $ 195 billion – almost twice as much as the value of Solana Blockchain’s sun.
FDV is based on the maximum supply of a token, 100 billion in this case. The self -reported circulating supply is 6.3 billion, seting its market capital of around $ 6.1 billion.
PI Network has drawn comparisons with viral projects from previous cycles, including Safemoon, which also attracted a detailed audience with aggressive marketing and referral schemes.
In order for users to begin mining the pi tokenet on a mobile device, they must first receive an invitation from another user. They are then issued with an invitation code they can share themselves. Several tokens are rewarded for each referred user and creates an ecosystem that mirrors multilevel marketing (mlm) or pyramid schedules.
The project has been around since 2019, when its test network was to live in 2020. The token release marks the start of PI Network Mainnet, which means that all the tokens accrued can be transferred and traded.
However, exchanges are currently lacking sufficient liquidity to handle the billions of tokens traded. In fact, even the most fluid exchange, OKX, has a 2% market depth of between $ 33,000 and $ 60,000. This means that an order on, says $ 100,000 would move the price significantly and create an unstable trading environment.
Market depth measures the amount of capital required to move an asset in both directions. Based on token’s market capital, a 2% feature would equate to a shift of $ 146 million in the value of the project.
PI Network has tried to remedy a difference between buyers and sellers by offering holders of a “lock-up” period, which can be up to three years. If holders choose to lock their tokens, they will receive higher mining rewards. A similar approach was used by Richard Heart’s controversial Hex Token, which lost more than 99% of its value between 2021 and 2024, making many of the locked tokens worthless.
