Pi Network faces credibility test after price crash and insider wallet activity

Pi Network users have levied allegations of rug pull against the project creators after the recent plunge in its price. In a post on X, one of the popular members of the Pi Community, Dr Picoin, claimed that insiders have dumped millions of tokens.

According to Dr Picoin, the sell-offs by insiders followed recent announcements about upgrades and improvements to the Pi Network at Consensus 2025. He claimed that the hype around these announcements pumped PI value, and insiders used that opportunity to sell.

He said:

“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.”

Interestingly, the users alleging rug pull and sell-offs point to blockchain data showing that a wallet allegedly controlled by the Pi Core Team transferred 12 million PI in the last 24 hours.

However, some other users have pushed back against the claims, noting no rug pull. Pinewszone on X explained that the wallet that many claim is selling is a distribution wallet that the Pi Core Team uses to migrate user balances to the mainnet.

They posted:

“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.”

While community members are arguing about what is happening, the Pi Core Team has been quiet, further allowing the fear of uncertainty and doubt (FUD) to spread among users.

PI token loses more than 50% within a week as users wait for mainnet

Meanwhile, most of the concerns from users alleging rug pull appear to be tied to the sharp drop in PI price this week. The token reached $1.60 on May 12 but started dumping since then and is now at 0.679, representing around a 58% decline.

Dr Picoin posted:

“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?”

However, the decline is mostly due to the disappointing wait for most users looking forward to the network transitioning to mainnet. A post from the official Pi Core Team account sparked excitement last week when it teased a huge announcement.

Most people expected that the announcement would have something to do with the long-awaited mainnet launch, but it was about to be the launch of the Pi Network Venture fund. The news of a $100 million fund for a Pi Network-based project was underwhelming for most users.

Interestingly, trading volume for PI declined 34% to $328.54 million in the last 24 hours, according to CoinMarketCap. Trading volume has also declined since peaking at $2.03 billion on May 13.

This shows holders sold the rumor, i.e., they dumped the token when it was still pumping before the team announced the launch of the Venture Fund. Since the announcement on May 14,  trading volume has fallen well below $1 billion.

Pi Network announces new upgrades at Consensus 2025

Meanwhile, Pi Network has continued to evolve even as users wait for the mainnet launch, which has no scheduled date yet. The network founder, Dr Nicholas Kokkalis, disclosed at Consensus that Pi Network has now shut down its central node to enable full decentralization of the network.

He added that its node operating software now has a new version called Horizon, which is available for node operators to upgrade. Horizon reportedly offers security, performance, and protocol.

Interestingly, Kokkalis said in his talk titled  “Unleashing Mainstream Adoption with Al + Blockchain Infrastructure” that Pi Network will integrate artificial intelligence. He called on AI companies to build AI apps on the network, adding that there is a plan to improve Pi Network’s technical infrastructure.

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot