Pi Network Faces 50% Token Plunge Amid Insider Trading Allegations
2min read Pi Network, a cryptocurrency project that has garnered significant attention, is currently facing severe allegations of insider trading and potential fraud. According to crypto investigator Atlas, Pi Network insiders allegedly dumped 12 million PI tokens in a coordinated effort, causing the token's value to plummet by over 50%. This massive sell-off, valued at approximately $8 billion, has raised serious concerns about the project's integrity and has led to widespread speculation about its future.
The Pi Network, which promised users the opportunity to earn free tokens through a process called "free mining," has been plagued by delays and a lack of practical applications. Despite launching its mainnet in early 2025, the project has failed to deliver on its promises, leading to a significant drop in investor confidence. The token's price, which briefly surged to $1.60, quickly crashed following the insider dump, leaving many investors with substantial losses.
Adding to the market’s unease, 5.7 million PI tokens unlocked today, flooding an already pressured market. The number of PI coins held on centralized exchanges has now surged to a record 397 million, increasing fears of another wave of sell-offs. Market analysts warn that the unlocked supply could further suppress PI’s price unless buying volume increases significantly.
Crypto influencer Dr. Altcoin claims the Pi Core Team operates more than 10,000 wallets and sub-wallets, most hidden from public view. He called for transparency, urging PI holders to demand answers instead of defending the project blindly. On-chain analysts say only seven major wallets are fully traceable, further deepening the community’s concern about undisclosed supply and insider control. With the token’s unlocked supply hitting the market and multiple wallets under scrutiny, market analysts warn that PI’s price could remain under pressure unless investor demand returns in force.
The allegations against Pi Network are not new. The project has faced criticism since its inception, particularly regarding privacy concerns. In 2021, a data leak involving 17GB of user data raised questions about the platform's security measures. Additionally, authorities in the region claimed that Pi Network had collected private data during its "free mining" process, further fueling skepticism about the project's transparency and ethical practices.
Despite these issues, Pi Network has continued to attract users, with claims of having 60 million users. However, the actual number of users with PI tokens in their wallets is much lower. The platform's reliance on a multi-layer referral system rather than actual technological innovation has also been a point of contention. Critics argue that Pi Network lacks real-world applications, open-source code, and transparency, which are essential for building trust in the crypto community.
The recent insider dump has exacerbated these concerns. Dr. Picoin, a prominent member of the Pi Network community, discovered that 12 million PI tokens were transferred to exchanges by the Pi Core Team. This move, which coincided with the token's price crash, has led many to believe that insiders were deliberately manipulating the market to profit at the expense of ordinary investors. The data from the blockchain supports this theory, showing that large sums of money were withdrawn from the wallet just before the crash.
Supporters of Pi Network argue that the project is transitioning from a testnet to a mainnet, but the rapid and unannounced changes have left many experts skeptical. Atlas and other analysts believe that the recent events are characteristic of a pump-and-dump scheme, where insiders artificially inflate the token's price before selling their holdings and causing a crash.
The lack of decentralization, transparency, and real-world applications in Pi Network has further eroded investor confidence. If the allegations of insider selling are proven true, it could qualify as one of the largest rug pulls in the crypto industry this year. The project's future hangs in the balance as faith in its honesty continues to dwindle, and many are now questioning its legitimacy.
