Pi Network token continued to say no on Friday regardless of optimistic ecosystem developments.
This week’s Pi Network’s (Pi) much-anticipated announcement failed to satisfy expectations. As of Friday, Might 16, the token was down 0.63% to $0.9062, marking a 44% decline from its current multi-month excessive of $1.62. The volatility seems to be the results of hype that didn’t ship.
On Might 8, the Pi Basis teased a “major announcement” to be revealed on Might 14. The teaser triggered a pointy rally, with Pi surging over 200% in a matter of days to achieve its highest degree since March 2025. Nevertheless, as soon as the announcement was made, markets responded with disappointment.
https://twitter.com/PiPioneersX/standing/1922283146147508406
The reveal turned out to be a Pi Network venture fund, that may make investments $100 million in ecosystem startups. Based on the Basis, the purpose is to speed up real-world use circumstances on the chain and enhance long-term worth.
Pi Network traders promote the information
Whereas the announcement could seem optimistic from a improvement standpoint, traders have been clearly anticipating extra. Nearly instantly after the information broke, the token dropped over 50%. A number of components clarify the sharp pullback. First, the enterprise fund is a long-term initiative and doesn’t present any speedy utility or value assist for the token. Second, the build-up to the announcement seemingly created unrealistic expectations.
The sort of market response is commonly referred to as “purchase the rumor, promote the information”, a standard sample the place traders bid up a token in anticipation of bullish information, solely to dump as soon as the announcement underwhelms.
For that reason, the Pi Network value correction is to be anticipated. Nonetheless, the excellent news for Pi is that the token is stabilizing across the ranges it beforehand was, suggesting that volatility could also be normalizing.
