Pi Network has announced the formation of Pi Network Ventures, a $100 million fund to support startups developing real-world uses for the cryptocurrency Pi Coin. The fund is funded by 10% of the tokens allocated to the non-profit Pi Foundation and aims to transform Pi from a mere mined asset to a currency usable in everyday life.
Despite the positive intent of the fund, Pi Coin has seen a sharp drop in value of over 45%, resulting in a loss of nearly $5 billion in market capitalization and elimination from the top 20 cryptocurrencies. The token plummeted to around $0.88 after briefly reaching $1.5, sparking concern among investors and the community.
Pi Coin is facing liquidity issues, with even on the most liquid exchange, OKX, the market depth only reaching US$33,000 to US$60,000 for a 2% price movement. This low liquidity causes high volatility and makes it difficult to stabilize the token price.
Although the Pi Network Ventures fund represents a step towards real-world use of the Pi Coin, the community remains skeptical due to the lack of decentralized applications (dApps) and repeated delays in implementation. The fund’s success will depend on its ability to attract quality projects and restore investor confidence.