While the Pi Network was once seen as a promising cryptocurrency initiative, its core team is now being accused of initiating a “rug pull.” Dr. Altcoin, a crypto analyst, accused the Pi Core Team on X (previously Twitter) of deceiving the community and taking advantage of a deliberate price increase plan.
Dr. Altcoin’s shocking statement focuses on what the team did in the lead-up to the Consensus 2025 event. The analyst claims that the announcement of the Pi Ecosystem, created by the Pi Core Team, caused the price of Pi Coin to rise from $0.40 to $1.60. The community, excited about the upcoming Mainnet and 100 well-developed DApps, was led to think the project was just one step away from a breakthrough.
However, Dr. Altcoin explains that the important transactions were taking place outside the public view. The Pi Core Team is said to have sold tens or even hundreds of millions of Pi tokens when the price increased sharply. The Pioneers, the members of the Pi community, were still distracted by new announcements and pledges of future progress.
While many hoped for a major announcement, the update on May 14 was just about a new funding initiative, with no significant milestones reached in the mainnet or DApps. Dr. Altcoin concluded that the community was disappointed, and the price of Pi Coin started to fall sharply. Currently, the coin is valued at about $0.80, and it may soon revert to its original value of $0.40.
The fact that the Pi Core Team is believed to hold around 89% of the tokens has made people worry more about centralization. Hence, many fear that there may be another Terra Luna collapse, given that centralized power can once again result in big sell-offs, which could harm people who hold smaller stakes.
Dr. Altcoin says that since the team didn’t distribute all the ecoins as promised, they defrauded users and pocketed the extra money for their use. Many of the current and former officials who promoted the project now feel duped by what they have actually seen. If the claims are confirmed, early users of Pi could feel greatly disappointed and wonder whether what Pi promised was ever planned to be delivered.
Also Read: Fact Check: Is Binance Hinting at Pi Network Crypto Listing?
