If you are wondering why did Pi Network start at $2? or why its initial price was set at $2 instead of the consensus price of $314.159 per Pi or any higher value, this article will explain the real reasons behind this initial valuation.

What is Pi Network and Its Digital Currency?

Pi Network (Pi) is the main digital currency of the Pi Network blockchain. Unlike meme coins or valueless digital tokens, Pi is a legitimate blockchain network designed to create a global payment system. The network aims to facilitate secure and reliable transactions between users and registered merchants who accept Pi as a payment method.

Currently, more than 100 companies and merchants worldwide accept Pi for payments. It is expected that more businesses will be added to the network through the Pi Browser in the coming period. Additionally, the migration process for users who have not yet transferred their balances to their wallets, known as the “mass migration of pioneers,” will continue.

Why Did Pi Start Trading at $2?

Despite the consensus price of $314.159 set by the Pi Network community, the actual trading price started at just $2. The primary reason behind this is the market mechanism, where the price is determined by supply and demand on trading platforms.

The official Pi Network team has stated that Pi is not meant to be sold for cash. However, trading was allowed on selected exchanges, such as OKX, which became the first officially recognized platform to list Pi.

Main Reasons for the Initial $2 Price

1. Supply and Demand

The financial market operates primarily based on supply and demand. If more sellers list their Pi at lower prices, the currency’s value will decrease. Conversely, if most users set a high selling price, such as $314, buyers would have to pay that amount, or they wouldn’t be able to purchase Pi.

2. Lack of Liquidity

Pi has been mined for free via mobile phones since the network’s launch in 2019, meaning it had no prior financial valuation before being listed on exchanges. Therefore, it is natural for its price to start low until sufficient liquidity is injected to support the economy within the Pi ecosystem.

3. Eliminating Scammers

Starting at a low price, such as $2, helps filter out scammers who have stolen Pi accounts and balances. These individuals often rush to sell Pi quickly to secure instant cash profits. This initial price strategy discourages such activities.

4. Limited Pi Available for Trading

The majority of Pi coins are still locked in user wallets, with only a small number available for trading. This scarcity means the price is likely to increase gradually as demand rises. You can check Pi Network statistics on the Pi Block Explorer.

5. Investment Opportunity for the Future

A low starting price of $2 provides investors with a chance to buy more Pi at a lower cost and hold it until its value appreciates in the future. Many Pi enthusiasts believe this is an ideal time to accumulate Pi before its price rises significantly.

6. Price Adjustment Over Time

Some users mistakenly think that Pi starting at $2 signals project failure. However, the reality is different. Many well-known cryptocurrencies, including Bitcoin, started at extremely low prices. For example, Bitcoin was initially traded at just $0.0049 in 2009. Today, it has surpassed $100,000 per BTC.

Comparison Between Pi Network and Bitcoin

As mentioned, Bitcoin started at a price of just a few cents, but as its adoption and usage grew, so did its value. The same scenario could unfold with Pi if the network continues to develop and gain adoption among users and merchants.

📌 Read also: Pi Network vs. Bitcoin: A Comprehensive Comparison

Conclusion

Pi Network starting at $2 does not mean the project has failed. Instead, it is a natural phase in the evolution of any new digital currency. As demand increases, Pi’s price is expected to rise gradually. Therefore, if you are a Pi pioneer, it may be wise to hold onto your Pi rather than selling it at a low price, as its future value could be significantly higher.

Disclaimer

We do not provide investment advice or encourage any financial actions. We simply present the facts surrounding the question: “Why Did Pi Network Start at $2?” You are solely responsible for any decisions you make.

Also welcome your opinions in the comment section below, as your feedback helps build a better Pi Network community for everyone.