Pi Network’s price took a big hit, crashing 14% down to $0.68 as questions continued to mount about the crypto project’s transparency and the overall stability of the market. The decrease comes after weeks of hovering close to $0.74, with the price experiencing a completely overnight nosedive to $0.6327. The collapse of Mantra (OM) precipitated this Musk-induced winter. It erased more than $5.5 billion in market capitalization in less than an hour, sending shockwaves across the crypto market. As Pi Network's user base nears 60 million, questions surrounding the distribution of tokens and the network's overall transparency have intensified.
Market Turmoil and Price Decline
The recent crash of the crypto market in light of the Mantra (OM) rug pull had a big effect on Pi Network. That abrupt erasure of $5.5 billion in market cap value rattled markets. This decrease had a direct impact on the decrease of Pi Networks price. This event is yet another reminder of just how volatile the cryptocurrency market can be. When just one project fails, the ripple effects could wreak havoc on the others.
Despite being newly available for trade, Pi Network’s price has already found it difficult to hold its value. The alarming 14% recent plunge down to $0.68 is likely making investors uneasy. The price briefly plunged to $0.6327. Inherent features of the network compound this instability. Together with the high concentration of tokens among the core team and low liquidity of the token on major exchanges, this creates a big problem.
The Relative Strength Index (RSI) for Pi Network has fallen to an extremely oversold 28. This could indicate that the asset is oversold and due for a rebound. That time however, when Pi Network was equally oversold, the price rocketed back up an incredible 99% only hours later. This rapid recovery is a fortune for investors and those looking to invest. Rising interest rates and lack of transparency could dampen any rebound.
Transparency Issues and Token Distribution
The current members of the Pi Core Team collectively represent more than 67 billion PI tokens. This creates risks of undue centralization and anti-competitive market manipulation. The total supply is limited to 100 billion tokens. This massive monopoly in the hands of a few organizations has raised a lot of eyebrows around the crypto community.
This release is just the beginning, with a whopping 1.5 billion tokens slated to hit the markets this year alone. Additionally, this influx of new tokens would dilute the value of PI even further, likely pushing down the price even more. The inexcusable lack of transparency surrounding the distribution and use of these tokens has only further fueled skepticism among analysts and investors.
The first three wallets are Pi Core Team members. This reality should make centralization and network control hawks uneasy. This overwhelming concentration of power has the potential to undermine the decentralized ethos of cryptocurrency that many boast about, while creating ample opportunities for market manipulation. Investors have been demanding more transparency and clarity on the fate of the Pi Core Team’s holdings and intentions.
Future Outlook and Expert Warnings
For now, Pi Network’s demand is very limited considering it’s not listed on any major exchanges. This lack of accessible trading channels prevents healthy trading activity and price discovery from taking place, thereby exacerbating the network’s volatility. Without listings on major platforms like Coinbase and Binance, Pi Network struggles to attract a wider audience and establish itself as a legitimate cryptocurrency.
One crypto expert has warned that Pi Network's price could crash by as much as 55% in the coming weeks. This alarming prediction stems from two key factors: the rising supply of tokens on exchanges and the persistent lack of transparency. This expert’s warning should serve as a clarion call for action to fix these issues and bring back investor confidence.
"The OM incident is a wake-up call for the entire crypto industry—proof that stricter regulations are urgently needed. It also serves as a HUGE lesson for the Pi Core Team as we transition from the Open Network to the Open Mainnet." - Dr Altcoin (@Dr_Picoin)
