Pi Network has launched an ambitious $100 million venture capital fund to accelerate real-world adoption of its PI token, even as the cryptocurrency tumbles 17% below the critical $1 threshold.
Pi Network Ventures, funded through 10% of the total PI supply, aims to invest in early-stage through Series B companies that integrate the token into artificial intelligence, fintech, e-commerce, and consumer applications.
Vague Venture Strategy
The initiative represents a strategic pivot toward ecosystem development, with investments primarily made in PI tokens rather than fiat currency. This approach aligns with the network’s long-term vision of creating sustainable utility and demand for its native cryptocurrency across multiple industries.
“By aligning incentives and providing resources to high-potential founders, startups and companies, this initiative aims to create a feedback loop of innovation and adoption, designed to benefit builders, businesses, and most importantly, the global community of Pioneers. Pi Network Ventures is part of Pi’s diverse high-level strategies to boost utility and empower the Pi ecosystem: high-signal investment and incubation working in parallel with grass-roots utility and ecosystem movements.”
The announcement comes after PI enjoyed a remarkable 85% price surge over the previous two weeks, fueled by renewed investor interest and persistent rumors of a potential Binance listing.
Further Downside Ahead?
Despite the fundamental development of the new venture fund and the sharp upside momentum leading up to the actual announcement, technical analysis suggests PI’s recent rally may be running out of steam. The token has failed to maintain its upward trajectory, with today’s sharp decline erasing a significant portion of those gains.
Still, the 100 SMA remains above the 200 SMA on the hourly time frame, despite price dipping below the 200 SMA dynamic support, while MACD and stochastic are in oversold territory, suggesting that a return in buying interest is not entirely impossible.
With PI now trading below the psychologically important $1 mark, attention turns to critical support at $0.90. If this level fails to hold, technical analysis points to potential further declines toward $0.78 or even deeper corrections in the days ahead.
Market observers note the disconnect between Pi Network’s ambitious ecosystem development and current price action. While the $100 million fund represents a significant commitment to building real-world utility, investors appear focused on short-term technical signals and profit-taking opportunities after the recent rally.
“While blockchain-native startups will certainly be part of the portfolio, Pi Network Ventures’ investments will also focus heavily on general technology sectors, including generative AI and AI applications, FinTech, embedded payments, ecommerce platforms, marketplaces, social networks and real-world consumer and enterprise applications,” as stated in its official blog.
As Pi Network works to establish partnerships through its new venture arm, the market will be watching closely to see whether fundamental developments can eventually overcome current technical weakness and reignite sustainable price appreciation.
