Ahmet Bedirhan Arvas 
In the crypto world, every new project brings with it questions as much as hope, and the Pi Network, which has been on the agenda recently, does not break this rule. In particular, the platform’s centralized structure and non-transparent approach have shaken investor confidence. This is naturally reflected in the prices.
What Does the Sharp Drop in Prices Mean?
In recent weeks, the price of Pi Coin tested an important psychological threshold of $ 1.66. However, the cryptocurrency, which could not hold on to this level, fell to the $ 0.70 band with a decrease of up to 57% in just a few days. What is even more striking is that this decrease caused a major meltdown not only in price but also in market value. The value fell from approximately $ 11 billion to $ 5 billion in a short time, indicating a loss of exactly $ 6 billion.
The Danger of Centralization
The most criticized aspect of the Pi Network is that its structure is largely centralized. Almost all of the project’s fixed supply of 100 billion units is held in wallets controlled by the Pi Foundation. There are currently around 7 billion tokens in circulation, while the vast remainder has yet to be released.
This raises several serious issues:
- Lack of Transparency: There is no publicly available information on who makes up the Pi Foundation or how it operates.
- Security Risk: There is a potential for this large amount of tokens to be misappropriated through an insider threat or a potential cyberattack.
- Lack of Independent Audits: There has been no independent audit of whether the Foundation’s assets actually exist.
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Why Are Exchanges Cautious?
This uncertainty environment is also causing major cryptocurrency exchanges to hold back. Platforms such as Binance and Coinbase have not yet listed Pi Coin. This hesitation continues even though three months have passed since the mainnet launch. The reasons are quite clear: Lack of transparency and potential market manipulation risk.
Another important factor is the billions of Pi tokens that will be released into the market in the coming periods. 1.48 billion tokens will be unlocked in the next 12 months alone. This could create a huge supply pressure on the market and cause prices to fall even further.
Technical Outlook for Pi Network
According to 8-hour chart analysis, Pi Coin has broken important support levels. In particular, falling below the $ 0.77 level indicates a reversal of the uptrend. The Relative Strength Index (RSI) also fell below the 50 level, signaling weakening momentum.
In this case, the support level around $0.60 is expected to be tested. If this area is also broken downwards, the next stop could be $0.40.
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