Pi Network Urged to Prioritize Transparency Amid OM Token Collapse

In the aftermath of the Mantra (OM) token collapse, analysts are urging the Pi Network to prioritize transparency and stricter regulations as it transitions to Open Mainnet. The Pi Network’s expanding ecosystem, which now includes Chainlink integration and Pi Ads, aims to establish a durable framework for adoption and utility, helping to mitigate risks analogous to those experienced by OM.

Concerns over market manipulation and risks associated with centralized exchanges (CEXs) have prompted some Pi validators to recommend that users consider withdrawing their coins to maintain price stability. The recent downturn in the crypto sector has raised apprehension regarding potential similar incidents in projects moving through crucial phases such as development and token unlocking. This includes Pi Network, which has recently entered its Open Mainnet phase.

Dr. Altcoin, a well-known crypto analyst and proponent of decentralized ethics, draws parallels between the OM incident and Pi Network, advocating for enhanced regulation. “The OM incident is a wake-up call for the entire crypto industry, proof that stricter regulations are urgently needed. It also serves as a huge lesson for the Pi Core Team as we transition from the Open Network to the Open Mainnet,” he stated on Twitter. While some members of the community defended Pi Network, citing its utility-focused roadmap and commitment to avoiding speculative behavior, Dr. Altcoin reiterated concerns over its transparency.

“One thing is clear about the PCT, they are not transparent,” he commented, stressing that accountability is crucial. Nevertheless, the broader Pi community remains optimistic. The Pi Open Mainnet account, presented as a forefront voice, rebuffed negative comparisons by highlighting specific reasons why Pi might avert OM’s fate. These include a deliberate slow token release strategy and the absence of significant early-sell events.

“Massive community (35M+ pioneers), steady unlocks, growing utility (.pi domains, dapps), and a clean track record,” they emphasized. Indeed, the Pi ecosystem is flourishing. The recent integration with Chainlink, along with new fiat on-ramps and Pi Ads, is fostering what the team describes as a “virtuous cycle” of adoption. “These advancements form a virtuous cycle for Pi Network. Easier fiat ramps bring in more users (Pi’s community is already ~60M strong), Pi Ads drive more apps & utility, and Chainlink integration adds trust and interoperability. More users → more utility,” they elaborated.

With an ever-growing community nearing 60 million strong, many believe Pi has established a robust, user-driven foundation, contrasting sharply with OM’s centralized operations. Nevertheless, skepticism persists. Mahidhar Crypto, a validator for Pi Coin, has advised users to extract their Pi coins from centralized exchanges to safeguard against manipulative pricing tactics. “We have observed what transpired with OM—how market makers exploited users. When you deposit your Pi tokens on CEX, market makers use bots to create artificial buy/sell walls, manipulating prices and liquidity,” he cautioned.

This echoes recent concerns regarding potential collusion between market makers and centralized exchanges. Mahidhar also urged the Pi Core Team to scrutinize the Know Your Business (KYB) verification processes for companies and refrained from listing Pi derivatives on CEXs, alluding to the perils of leveraged trading concerning nascent assets. Further intensifying reservations are on-chain metrics associated with OM. Trading Digits, an esteemed analysis firm, pointed out that the “Pi Cycle Top” indicator—a pattern often hinting at market peaks—has indicated twice for OM since 2024, with the latest signal occurring merely two months prior to its crash.

“Coincidence or bound to happen?” the firm questioned. Will Pi maintain a disciplined, utility-driven trajectory, or could it succumb to similar pitfalls that precipitated OM’s decline? As Pi Network enters this pivotal phase, the emphasis on transparency and community engagement will be key to its success. Observers will be closely monitoring the measures taken by Pi’s leadership to ensure that the lessons learned from the OM crash are effectively addressed.