My Personal View: Why the Sudden Pi Network IOU Price Drop and why it stayed low for 6 hours?

After a 6-hour drop to around $5, followed by a return to its previous level, the sudden price fluctuation could be due to a simulation or testing process by the Core Team. Given the recent Workforcepool post about the Open Network launch, it’s likely that the team conducted tests on exchange platforms like Coinbase to assess how the Pi IOU behaves under different market conditions.

Simulation of Market Activity, Including High and Low Liquidity Scenarios and Stress Volatility Tests: The price drop could have resulted from low liquidity, where small trades impact the price, while the recovery suggests that the market returned to normal liquidity levels. Additionally, the price movement could have been part of a stress test to evaluate how the network handles extreme volatility. Such tests are common before major launches to ensure that the system can handle real-world market fluctuations. This fluctuation appears to be part of the Pi Network’s preparation for the Open Mainnet launch, ensuring that the network can handle market conditions smoothly once fully operational. @PiCoreTeam

Feel free to share your thoughts in the comments below if you have a different perspective.