Pi Network price crashes amid insider sales, rug pull claims

Pi Network price continued its downward trend on Monday following last week’s ecosystem news event. 

Pi Coin (PI) token plunged to a low of $0.7165, down by 57% from its highest level this month. It is also hovering near its lowest level since May 9. It has erased over $4.21 billion in value in the last few days as the market cap fell from $9.35 billion to the current $5.14 billion.

Pi Network price has crashed as concerns about the coin rose. First, there are concerns that insiders have been selling tokens in their wallets. In an X post, Dr. Altcoin, a popular pundit on X, estimated that the team had dumped about 700 million coins in the past few months.

Another data point on the PiScan site shows that the Pi Foundation withdrew 15.02 million Pi Coins in the last 24 hours. The wallet now has 25.28 million coins valued at over $18.1 million.

Pi Network price also crashed as the Core Team was accused of running a rug pull scam earlier this month. Some analysts noted that the team sent an X post hinting at a major announcement during the Consensus event. That post triggered a short squeeze, which pushed the token up by over 200%. Some analysts noted that Pi Foundation used the rally to sell more coins. 

A key concern among investors and exchanges is that Pi Network is a highly centralized crypto project that is not audited. The Pi Foundation holds over 90 billion tokens, exposing the community to risk if something like a hack or a token dump happened. Worse, the Core Team has not revealed any details about the foundation’s membership. 

The centralization issue likely explains why tier-1 exchanges like Coinbase and Binance have not listed it three months after its launch.

Further, there are concerns that Pi Network has become a ghost chain or a blockchain with no developers. While the Pi Network Ventures launch is a step in the right direction, analysts note that it could take over a year before funded projects launch in the mainnet.

Pi Network price analysis

The eight-hour chart shows that the price of Pi Coin has been in a strong downtrend in the past few days. It has moved from a high of $1.6708 on May 12 to $0.7260.

Pi has moved below the key support at $0.7902, the highest swing on April 5 and 12. It has dropped below the 50-day moving average and is forming a bearish pennant pattern, a popular continuation sign.

Therefore, the coin will likely keep falling as sellers target the support at $0.5745, the lowest swing on April 29.