The Pi Network price has plummeted by over 57% in just a few days, triggering panic among investors. Amidst rumors of manipulation and allegations of centralization, trust is wavering. What is truly unfolding behind the scenes of this much-anticipated Web3 project? Let's unravel the truth from the fiction.
The Pi Network token (PI) is experiencing a steep drop, plummeting from $1.67 to just $0.72, marking a more than 57% decrease in a few days. This downfall wipes out over $4.2 billion in market cap, leaving only $5.14 billion.
This plummet raises serious concerns about the health of the Pi Network project and the transparency of its leadership team. Once touted as a democratic and accessible alternative cryptocurrency, Pi Network is now facing an unprecedented crisis of confidence.
Investors are alarmed by revelations of significant transfers of tokens between wallets linked to the Pi Foundation. According to crypto analyst “Dr. Altcoin,” over 700 million PI tokens have reportedly been moved from “Pi Foundation 3” wallet to “Pi Foundation 2” in just 4 months.
The PiScan.io site also indicates that the Pi Foundation had withdrawn over 15 million PI tokens in 24 hours. It currently holds 25 million tokens worth over $18 million. The Pi price drop raises “rug pull” accusations, a fraudulent practice of artificially inflating prices before massively liquidating assets. Additionally, the project’s high level of centralization is frequently criticized. The Pi Foundation allegedly holds over 90 billion tokens, posing a significant risk in case of hacking or manipulation. Furthermore, the members’ identities of the foundation remain entirely opaque.
The 8-hour unit chart clearly shows the formation of a bearish pennant pattern, a typical sign of continued decline. The support at $0.7902 has been breached, paving the way for a new test of the floor level of $0.5745.
The moving averages support this pessimistic outlook, with the Pi price well below its 50-day average, confirming the seller’s dominance. The Pi Network price collapses under the weight of a worrying combination of factors:
Currently, Pi Network embodies for many the downsides that the cryptosphere seeks to avoid: hyper-centralization, lack of transparency, and marketing escapades. At this point, savvy investors would be wise to steer clear of the PI token until the project’s governance and fundamentals have undergone radical changes. However, you can still invest in this altcoin through one of the top current exchanges: Bitget.
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