Pi Network (PI) Slumps Despite Major Announcement — Here’s Why

Date: Thu, May 15, 2025 | 05:30 AM GMTIn the cryptocurrency market over the past 24 hours, Pi Network has come into the spotlight as the Pi Core Team dropped one of its biggest announcements yet. However, the price of PI took a surprising dive—falling over 30% in a single day and dropping below $0.90 after reaching a 24-hour high of $1.29.Source: CoinmarketcapMajor Announcement: $100M Pi Network Ventures LaunchedOn May 14, the Pi Core Team officially introduced Pi Network Ventures, a $100 million fund aimed at supporting real-world applications of Pi. Backed by 10% of the Pi Foundation’s token reserve, the initiative will invest in startups and projects that build utility around Pi—especially in sectors like AI, fintech, e-commerce, social platforms, and more.Source: @PiCoreTeam (X)The idea is clear: Pi doesn’t just want to be a token people hold—it wants to be a token people use.So Why Did PI Price Crash?The drop might seem confusing at first, but zooming out, this is a textbook case of “Buy the rumor, sell the news.”Looking at the 2-hour chart (see below), we can see the momentum began on May 8, when the Pi Core Team teased a major upcoming announcement. That hint alone was enough to set off a buying frenzy. From a low of $0.61, PI soared by over 180%, peaking at $1.6699—an incredible rally fueled by hype and speculation.Pi Network (PI) 2H Chart/Coinsprobe (Source: Tradingview)However, once the announcement was made on May 14, reality kicked in. Traders who rode the rally took profits, triggering a sell-off. The price slid down to around $1.30 just before the news hit. And once the $100M venture fund was officially revealed, a wave of “sell the news” trading kicked in—dragging PI down another 37% to a low of $0.81.What’s Next for Pi Network?Right now, the price pf PI appears to be cooling off from the short-term volatility. The venture fund announcement may not have moved the price upward immediately, but it signals something much bigger for the long run.The Pi Network Ventures plan to invest in real businesses could help drive actual usage of PI—something that’s been missing so far. If successful, these investments could fuel demand for the token over time.In short, the current price drop might just be a bump in the road. If real-world adoption picks up thanks to the fund, PI could be setting the foundation for a more meaningful rally in the future.Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.