The Pi Network community continues to call for increased transparency from the Pi Core Team. Their primary focus is a surprising decline in price and the associated token holder distribution. The community doesn’t want to repeat the mistakes of other projects such as Mantra (OM). This lack of transparency has definitely played a role in their prolonged absence from markets like Binance and Coinbase, where Pi Coin has yet to be listed.
It is now at a demand zone level. Picoin price analysis Pi Coin had a 17% downtrend on April 16, reaching $0.611. This downtrend has amplified concerns over the infrastructure project’s tokenomics, in particular, the large amounts of tokens held by the Pi Network team. If the devs fail to pacify the community, experts believe the coin may drop further to a support level of $0.3945.
Token Distribution Concerns
A key area of dispute is how Pi Coin will be distributed. Currently, the Pi Network team still controls over 67 billion PI tokens. This is more than half of the total max supply of 100 billion tokens. This centralization of tokens creates compliance concerns and the risk of market manipulation. This year, more than 1.5 billion of them will be released. This immense new flow, many locals fear, will create price dilution and is causing concern within the community.
Those in the community are already drawing comparisons to other successful and new cryptocurrency projects. These projects failed due to lack of transparency and reckless token deployment and handling. They are urging the Pi Core Team to listen to these examples. Specifically, they want the T4A team to adopt a more transparent and accountable process.
“It serves as a HUGE lesson for the Pi Core Team as we transition from the Open Network to the Open Mainnet… One thing is clear about the PTC, they are not transparent.” - Dr Altcoin (@Dr_Picoin)
Impact on Exchange Listings
This absence of transparency has developed into a major barrier to getting Pi Coin listed on major cryptocurrency exchanges. Binance and Coinbase, for example, won’t list something until they are satisfied that a project has sound governance and clear, transparent tokenomics.
Without these guarantees, major exchanges are unwilling to list Pi Coin. Consequently, it is not very accessible to a wider spectrum of investors. Increased liquidity from a full listing on major exchanges would greatly boost the price of Pi Coin and help their cause. This is on the condition that the Pi Network manages to answer the transparency concerns.
Technical Indicators and Future Outlook
Even with the recent plunge in price, Pi Coin is still up roughly 60% compared to its prices just several weeks ago. The Relative Strength Index (RSI) has dropped to an oversold level of 28, an RSI level that often occurs before a price turnaround. This bullish indicator means that the coin is currently oversold and has potential for a turnaround.
Analysts suggest that if the Pi Network team addresses the community's concerns regarding transparency, token distribution, and supply management, the Pi Coin price could potentially reach a new record high of $3. However, if these developments do not transpire, the coin may drop to a support floor of $0.3945. Today, the Pi Network ecosystem exists as it did immediately after the Pi Open mainnet launch.
