Expert Claims Pi Network Dumped 1.2M Tokens, Price Crashes 90%
A prominent Pi community analyst calling himself Mr. Spock has come out swinging, accusing the Pi Network's...
Quick overview
- Mr. Spock accuses the Pi Network's core team of causing selling pressure on the token, citing the sale of 1.2 million PI tokens.
- The price of PI has plummeted from $3 to $0.20 in a matter of weeks, raising concerns about the core team's liquidity.
- Community members are demanding greater transparency and a clear roadmap for decentralization to restore trust in the project.
- Despite ongoing developments like a decentralized exchange and a stablecoin project, investor confidence remains low amid allegations of mismanagement.
A prominent Pi community analyst calling himself Mr. Spock has come out swinging, accusing the Pi Network’s core team of being the main cause of the selling pressure on the project’s native token. His claims follow reports of a whopping 1.2 MILLION PI tokens being sold off, which he reckons is part of the team’s efforts to try and get some liquidity going amidst the project’s slow product rollout.
“I’ve said this many times before: its our Core Team selling Pi because they don’t have any other way to make ends meet” Spock said on X. He claims the devs have been forced to sell off tokens just to cover their expenses, simply because they don’t have any commercial revenue streams or a working ecosystem to fall back on.
Community members quickly jumped on the bandwagon with concerns, one of them simply pointing out that only the core team have the kind of supply that could really move the price from $3 to $0.20 in literally a few weeks – which just so happens to match the recent market data. A lot of Pioneers (that’s Pi holders to you and me) are now calling for more on-chain transparency and a clear roadmap for what they want to do with decentralization to restore some trust in the project.
Some key details:
- 1.2 MILLION PI tokens have allegedly been sold off
- Price has fallen from $3 to $0.20 in just a few short weeks
- Critics say only the core team have the kind of liquidity that could cause the price to drop like that.
Past Allegations and Project Disputes
This isn’t the first time that the Pi Network’s management have been at the centre of a controversy. A former executive of the company, McPhilips, was previously accusing the leadership of just plain old misusing $20 million of project funds. And if that wasn’t enough, there were court documents back in 2020 that suggested the company was basically crippled by internal disputes and alleged mismanagement.
Spock’s latest bit of criticism has just reignited all the old debates about the project’s financial transparency. Some users think that if token sales are indeed happening they might actually be for legitimate expenses like ongoing Protocol 23 testnet upgrades or maybe even infrastructure work. But others are saying that without any official disclosure this kind of thing can just be the kiss of death for community confidence.
As a result we’ve seen a big push for public audits, fund tracking and developer accountability just springing up all over social media.
Pi Price Drops 30% Despite Ecosystem Updates
The price of the Pi coin has now dropped by 30% in the past month – and this is on top of a longer term slide that has basically wiped out more than 90% of its value since the project’s peak. Despite all of this the Pi Network are still plugging away and introducing new features in the hopes of strengthening their testnet ecosystem.
Some recent updates have included the introduction of a decentralised exchange (DEX) and automated marketmaker (AMM) for developers to issue and test tokens. And they’re even working on a stablecoin project – dubbed SPi – that’s supposed to be pegged to the US dollar and being tested on the Pi testnet.
While all these efforts suggest the devs are still actively working on the project, investor confidence is still pretty fragile. Mr Spock reckons that without real world utility or transparent governance the Pi Network risks basically becoming a “slow-motion rug pull.
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