Cryptocurrency Drops Out of Top 20 After 33% Decline

TLDR Pi Coin crashed 33% in price following the launch of a $100 million VC fund Market cap plummeted by nearly $5 billion, dropping out of top 20 cryptocurrencies Pioneer community expressing frustration over lack of functioning DApps Community leaders accuse Core Team of neglecting early supporters Price dropped from $1.5 to around $0.84-0.89 within days Pi Coin has experienced a sharp decline in value following what many expected to be positive news for the network. The cryptocurrency dropped by 33% in the hours after the Pi Network announced the launch of a $100 million venture capital fund. The price fell from recent highs of $1.5 earlier this week to approximately $0.88, erasing most of its weekly gains. This represents a 45% decline from its peak. The sharp drop came despite what appeared to be a major development for the ecosystem. On May 14, the Pi Foundation revealed “Pi Network Ventures,” a $100 million fund designed to support startups building on the platform. PI Network $PI is nearing support at $0.79 If that breaks, the range POC + trendline at $0.65 is a big level of support Bulls need the trendline to hold for more upside pic.twitter.com/nWo76TzDrF — Trader Edge (@Pro_Trader_Edge) May 15, 2025 According to the announcement, the fund will operate similarly to a typical Silicon Valley venture capital firm. It aims to back projects across various sectors including generative AI, gaming, FinTech, e-commerce, and social media platforms. The fund will also support blockchain-native companies working on the Pi Network. The goal appears to be expanding the ecosystem’s real-world utility and driving wider adoption. Community Backlash The price drop coincides with growing discontent within the Pi Network community. Many long-term supporters, known as “Pioneers,” have expressed feelings of betrayal over the current state of the platform. A key complaint centers on the lack of functioning decentralized applications (DApps) on the network. This issue has become particularly frustrating for community members who have supported the project for up to six years. Dr. Altcoin, a prominent voice within the Pi Community, described the announcement as “nothing short of a betrayal.” He pointed out that after six years of development, the DApps promised by the Core Team still do not exist. 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. We waited, we believed, and we contributed under the promise that time was... — Dr Altcoin (@Dr_Picoin) May 14, 2025 The criticism extends beyond just the absence of applications. Dr. Altcoin has also accused the Core Team of neglecting core community members and undervaluing their contributions to the network’s growth. According to his statements, more than 94% of Pioneers who helped build and sustain the network failed to acquire 1,000 Pi tokens. This was attributed to the Core Team’s refusal to adequately reward referral bonuses. Market Impact The price decline has had a substantial impact on Pi Coin’s market position. During its rally to $1.5 earlier this week, Pi Coin’s market capitalization had reached $11.12 billion. This placed it ahead of established cryptocurrencies like Litecoin and Bitcoin Cash. However, the excitement surrounding the announcement faded quickly. The altcoin lost nearly $5 billion in market value over just three days. Trading volumes have increased amid the volatility, rising 35% to $951 million. Some analysts point to a 5.2 million token unlock as another factor contributing to the price decline. Technical indicators show mixed signals for the cryptocurrency. Pi is trading above important moving averages, including the 50-day SMA and the 10-day EMA, which generally indicate buy signals. The relative strength index at 57.24 remains in neutral territory, suggesting market indecision. Meanwhile, the moving average convergence divergence points to potential short-term bullish movement. If the price holds above support at $0.85, analysts suggest there could be a recovery toward $1.10. However, if it drops below this level, Pi might retest support around $0.74. The Pioneer community, which reportedly includes 70 million members across 200 countries, continues to express concerns about the project’s direction. Many feel that Pi Network’s global ambitions have come at the expense of its core community. The price currently stands at approximately $0.84-0.89, representing a substantial drop from its recent high. Market participants appear to be reassessing their positions as the project continues building despite the current price decline. The latest trading data shows Pi Network hovering near the $0.85 support level as traders digest the recent news and price movement. Source: https://blockonomi.com/pi-network-pi-price-cryptocurrency-drops-out-of-top-20-after-33-decline/