Pi Network to invest $100M in blockchain apps; community unhappy

Pi Network Ventures is funneling a $100 million investment to support startups that strengthen the Pi Network ecosystem.

The Pi Foundation announced on Wednesday, May 14, that it had launched Pi Network Ventures and committed $100 million to fund startups.

In its press release, the Foundation explained that it would direct its Silicon Valley-inspired fund toward innovative startups building within the Pi ecosystem.

The fund aims to back projects that both foster real-life applications and integrate Pi cryptocurrency.

At the same time, the fund welcomes startups from various sectors—not just crypto-native companies.

The Foundation stated:

“Pi Network Ventures plans to support not only blockchain-native startups, but also a wide array of businesses in generative AI, gaming platforms, FinTech, ecommerce, embedded payments, marketplaces, social networks, and other real-world applications.”

By highlighting this approach, the Foundation emphasizes another way it sets itself apart from traditional crypto models.

Pi Network Ventures plans to use the methods and principles common to Silicon Valley venture capital firms.

It will apply sourcing and vetting techniques that established VC firms typically use to identify businesses with the highest potential to impact the market.

This strategy includes backing firms across various growth stages, starting with early-stage startups and continuing beyond the Series B stage.

Unlike traditional VC firms that often focus solely on profit, Pi Network Ventures will prioritize creating value and utility within the Pi ecosystem.

The venture aims to invest in projects that either use Pi tokens in their services or implement Pi Network technology in real-world applications.

With this strategy, Pi Network Ventures intends to boost adoption and demand for the Pi token while supporting transformative innovations across industries.

However, despite the significant announcement, the market reacted negatively.

The price of PI dropped from a high of $1.30 per day to $0.8183 before stabilizing at $0.87.

The announcement has also brought a wave of negative sentiment as well as positive reactions. 

While Woody Lightyear, an X user, shared positive feedback about the announcement, saying, “Explosion of utilities incoming. Such a strategic move for the ecosystem,” there were others with differing opinions. 

An X user named Dave Roscoe said, “Gotta say I am disappointed. You used your community to build hype, driving up our hopes, only to release an announcement that serves you”.

Don Ranali described what Pi did as a “classic pump and dump.” 

The price of PI dropped from a high of $1.30 per day to $0.8183 before stabilizing at $0.87.