Pi Network Faces Credibility Test After Price Crash and Insider Wallet Activity

Pi Network, once hailed as a revolutionary mining solution, is now under scrutiny after its token’s value crashed by over 50% in a week. Allegations of a rug pull by insiders have rocked the community, while the project’s latest announcements at Consensus 2025 left many disappointed.

• PI token price crashed from $1.60 to $0.679, a 58% drop in a week.
• Dr Picoin accused Pi Core Team of a rug pull, selling millions of tokens at the peak.
• Pi Core Team’s silence has fueled FUD; some users defend the team, suggesting wallet activity is for mainnet migration.
• Community disappointed with $100 million Venture fund announcement instead of mainnet launch.
• Pi Network plans to shut down central node for full decentralization, release Horizon software, and integrate AI.

The drama began when Dr Picoin, a prominent community member, made grave accusations against the Pi Core Team. He claimed,

“The Core Team sold tens of millions, if not hundreds of millions, of Pi at the peak — all while the community was distracted by announcements and the illusion of progress.”

As a result, PI’s price plummeted from $1.60 to $0.679, a staggering 58% decline within a week. In the world of crypto, it seems the only thing more volatile than the market is the community’s trust.

Blockchain data showed a wallet, allegedly controlled by the Pi Core Team, transferring 12 million PI tokens in just 24 hours. Yet, not everyone was ready to jump on the conspiracy bandwagon. Pinewszone, another user, countered with,

“Don’t be misled by fake information circulating on X. Coreteam is not selling pi. You are just being influenced to panic sell so that they can buy at a lower price.”

They suggested that these transactions were part of migrating user balances to the mainnet—a process where tokens move from a test network to a fully operational blockchain.

The Pi Core Team’s silence has only fueled the flames of Fear, Uncertainty, and Doubt (FUD) among the community. FUD is a term often used in crypto to describe a state of confusion and fear that can lead to panic selling. Meanwhile, trading volumes plummeted by 34% to $328.54 million in the last 24 hours, a far cry from the peak of $2.03 billion on May 13.

Adding to the turmoil, the community was left disappointed by Pi Network’s latest announcement at Consensus 2025. Instead of the eagerly awaited mainnet launch, they unveiled a $100 million Venture fund. This move left many feeling betrayed, as they had hoped for more tangible progress. Dr Picoin questioned,

“Don’t question me—demand an explanation from the Co-founders: why did the price suddenly drop from $1.60 to $0.70 when, in reality, the update from PCT should have been seen as a positive development?”

Despite the controversy, Pi Network is pushing forward with plans to enhance its infrastructure. Dr Nicholas Kokkalis, the founder, announced the shutdown of the central node—a centralized point in the network—to achieve full decentralization. A new node operating software called Horizon is set to be released, and they’re exploring the integration of artificial intelligence into their network. These steps align with the mission of effective accelerationism, where technological advancement is prioritized to disrupt the status quo and drive innovation.

While the allegations and price crash have shaken the community’s trust, Pi Network’s commitment to decentralization and innovation could be the key to regaining credibility. However, the road ahead is fraught with challenges as they navigate the fallout and strive to deliver on their promises.

Can Pi Network regain trust after such a drastic price drop? It’s a question on everyone’s mind. As they work to rebuild that trust, the community watches closely, hoping for a brighter future in this tumultuous landscape.

Here are some key questions and answers that have emerged from this situation:

• What caused the sharp decline in PI token’s price?

  The sharp decline was triggered by allegations of insider trading by the Pi Core Team following network upgrade announcements, compounded by disappointment over the Venture fund announcement instead of a mainnet launch.

• What are the allegations made against the Pi Core Team?

  The Pi Core Team was accused of a rug pull, selling millions of PI tokens at the peak after announcements that inflated the price. A rug pull is when developers or insiders sell off their holdings, leaving the project and its investors in the lurch.

• How has the Pi Core Team responded to these allegations?

  The Pi Core Team has remained silent, which has only heightened the Fear, Uncertainty, and Doubt among users.

• What is the Pi Network doing to improve its infrastructure?

  Pi Network is moving towards full decentralization by shutting down its central node, releasing new node software called Horizon, and planning to integrate artificial intelligence.

• What was the community’s reaction to the Pi Network’s latest announcement?

  The community was disappointed, expecting a mainnet launch announcement instead of the $100 million Venture fund.

• How has trading volume for PI token been affected recently?

  Trading volume for PI token dropped by 34% to $328.54 million in the last 24 hours, significantly lower than the peak of $2.03 billion on May 13.

Despite the current turmoil, Pi Network’s commitment to decentralization and innovation could be their path to redemption. In the rollercoaster world of crypto, where trust and transparency are as valuable as the tokens themselves, Pi Network must navigate these challenges with care. As they strive to live up to the principles of effective accelerationism and disrupt the status quo, the crypto community remains hopeful but vigilant.