Pi Network (PI) stunned the market with a sharp drop, falling over 25% in 24 hours–even as the Pi Core Team unveiled one of its most ambitious initiatives to date: the $100 million Pi Network Ventures fund. Despite the scale of this announcement, PI’s price tumbled from a high of $1.29 to a low of $0.88, triggering confusion among traders and analysts alike .

$100M Fund Aims to Drive Real-World Utility

Unveiled on May 14, the Pi Network Ventures initiative pledges $100 million–drawn from 10% of the Pi Foundation’s token reserves–to support startups building real-world use cases for PI. The fund targets innovation across AI, fintech, e-commerce, social platforms, and other sectors, aiming to shift PI from a speculative asset to one rooted in tangible utility .

Despite the long-term vision, the market’s response was immediate and negative. The launch followed a week-long hype cycle, where price spiked over 180%: from $0.61 to $1.6699 after a vague teaser from the core team. Once the news dropped, profit-taking was hit hard.

Classic ‘Sell the News’ Reaction Unfolds

What looked like confusion was, in fact, a textbook example of “buy the rumor, sell the news.” Traders who rode the wave from early May began exiting positions just before the announcement, with price slipping to $1.30 pre-news–and plunging further to $0.88 post-release .

The sell-off suggests the fund’s launch wasn’t enough to justify PI’s meteoric rise. Instead, it marked the end of a speculative cycle fueled by anticipation rather than substance.

Path Forward: Can Adoption Reverse the Trend?

Although the immediate reaction was bearish, the long-term implications may prove bullish. If Pi Network Ventures succeeds in onboarding businesses and fostering actual demand for PI, the current dip could become a foundational moment separating hype from progress.

As it stands, PI’s correction reflects short-term market psychology rather than project fundamentals. Whether the token can reclaim momentum will depend on how effectively the $100 million is deployed–and whether real-world adoption follows.

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