.jpg)
The Pi Network's cryptocurrency, PI, has experienced a dramatic downturn, hitting an all-time low of $0.1515. This significant drop follows a period of decline since its mainnet launch, exacerbated by prominent figures in the crypto space echoing concerns about its legitimacy and potential as a scam.
Key Takeaways
-
Pi Coin (PI) has fallen to a record low, losing over 90% of its value from its yearly high.
-
Prominent crypto commentator Whale Guru labeled Pi Network as the "biggest scam in crypto history."
-
Bybit CEO Ben Zhou previously stated his exchange would not list Pi, citing Chinese police warnings about it being a scam targeting the elderly.
-
Lack of listing on major exchanges contributes to illiquidity and price depreciation.
-
Concerns regarding centralization, transparency, and the Pi Foundation's substantial holdings persist.
-
Technical analysis suggests further potential downside for the PI coin.
Record Low and Market Impact
The Pi Network price has seen a substantial decline over the weekend, reaching its lowest point on record. PI plunged to $0.1515, surpassing its previous all-time low of $0.1866. This represents a staggering drop of over 90% from its peak value this year, resulting in a loss of more than $18 billion in market capitalization.
Scam Allegations and Exchange Reluctance
The sharp fall in Pi Network's price has been amplified by accusations from a popular anonymous X account, Whale Guru, who described Pi as the "biggest scam in crypto history." These sentiments echo earlier statements made by Bybit CEO Ben Zhou in February. Zhou had announced that Bybit would not list Pi, referencing warnings from Chinese police that the project was a scam targeting elderly individuals and potentially leading to data leaks and financial losses.
The Pi Network team has reportedly refuted these allegations. However, the lack of listing on major cryptocurrency exchanges remains a significant factor contributing to PI's illiquidity and price depreciation since its mainnet launch in February.
Centralization and Transparency Concerns
Beyond the scam allegations, exchanges may be hesitant to list Pi due to perceived high centralization and a lack of transparency. On-chain data indicates that the Pi Foundation, described as obscure and unaudited, holds a vast amount of Pi Coins—over 90 billion—across numerous wallets. Furthermore, the Pi Network's circulating supply is expected to continue increasing due to daily unlocks, with over 1.24 billion tokens scheduled for release in the next twelve months.
Lack of Real-World Utility
Another critical factor contributing to Pi Network's struggles is its failure to achieve widespread real-world utility. The ecosystem, accessible only through the Pi Browser, is reportedly small. Additionally, there have been no funding announcements regarding the $100 million ecosystem fund that was launched in May.
Technical Analysis Outlook
Technical analysis of the Pi Coin price chart indicates a strong downtrend since February. The coin has consistently traded below key support levels, including the 50-day and 100-day Exponential Moving Averages. Current indicators suggest a high probability of continued downward movement, with the psychological level of $0.10 being the next potential point of interest for traders and investors.
Sources
This article was created with support from AI-driven technology, drawing on multiple reputable sources. The final content has been thoroughly reviewed and edited by BlockzHub's editorial team to ensure accuracy, clarity, and coherence. Original reporting sources are credited whenever appropriate and as required. The opinions expressed in this article do not necessarily represent the official views or positions of BlockzHub. This article is intended for informational purposes only and should not be considered financial or professional advice. Investing involves risk, and you should consult a qualified financial advisor before making any investment decisions.