Mobile blockchain startup Pi Network has launched a $100 million fund to support native startups

What’s new? Mobile blockchain startup Pi Network has launched a fund to invest in initiatives built on its infrastructure. According to a May 14 announcement, the NPO Pi Foundation is launching Pi Network Ventures with an initial investment of $100 million in native PI tokens and US dollars. The fund will invest in startups and ventures operating on the Pi Network or contributing to the broader network ecosystem.

Press release

What else is known?

“This strategic program intends to invest in high-quality startups and companies across sectors, driving innovation and ecosystem growth,” Pi Network said in an X post.

Source: X.com

The fund will utilize 10% of PI tokens reserved for ecosystem initiatives.

Pi Network Ventures aims to increase the utility of the native token by investing in startups and businesses that integrate it into products and services. The new organization will try to bring more applications, transactions, and companies onto the network while developing new use cases.

The company plans to invest in startups from early stages to Series B funding rounds and beyond. This approach will both support innovative projects and scale-proven businesses.

Meanwhile, the company will not limit itself to crypto investments; going forward, it intends to support technology sectors such as generative AI, fintech, embedded payments, e-commerce platforms, marketplaces, social networks, and real-world consumer and enterprise applications.

It aims to act like traditional Silicon Valley venture capital firms, employing the same search, screening, and selection methods aimed to “identify and support high-impact and disruptive startups and businesses.”

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The announcement came amid continued criticism of Pi Network, including accusations of operating on a pyramid scheme model and concerns about transparency. Skeptics pointed to the project’s scant white paper and limited public disclosure of funding sources.

The referral model, which rewards members for inviting others, has been compared to multi-level marketing (MLM) structures.

In addition, the PI token has fallen more than 65% since the mainnet launched in late February this year and is currently trading about 25% below its all-time high.

The asset ranks 29th in the overall cryptocurrency market capitalization ranking with a market cap of $6,3 billion and is trading at $0,8829.

Pi Network is a blockchain-based project designed for mobile use, allowing users to mine Pi coins directly from their smartphones.

Users can mine Pi coins effortlessly by tapping a button in the app once a day, unlike traditional cryptocurrencies that require significant processing power or investment to participate in staking.

Pi Network was created by a team of Stanford University alumni who saw Pi as a way to make cryptocurrency more accessible to the general public. They aim to develop an inclusive network that will become the most widely used peer-to-peer ecosystem in the world.