Pi Network Faces Centralization Concerns, 89% of Tokens Controlled by Core Team

An analyst has raised significant concerns about the Pi Network, drawing parallels to the collapse of Terra Luna in 2022. The primary issue highlighted is the centralization of the Pi token supply, with over 89% of the tokens remaining under the control of the Pi Core Team. This level of centralization has sparked fears of a potential market crash, similar to the one experienced during the Terra Luna incident.
According to the analyst, the Pi Core Team controls nearly 89% of the total Pi Coin supply. Out of the 100 billion Pi tokens that will ever exist, only 11 billion have been released to date. Of these, 7.1 billion tokens are in circulation, while the remaining 89 billion are locked under the team's control. This situation has been described as a "ticking time bomb," with the potential for a large-scale liquidation to cause a severe market crash.
The analyst's critique extends beyond token distribution to include the network's lack of transparency and absence of third-party audits. Unlike Bitcoin, which relies on decentralized mining, all Pi tokens are pre-minted and stored in a single centralized wallet managed by the Pi Core Team. The absence of public or professional reviews of the codebase or smart contracts has fueled speculation and skepticism within the crypto community.
Additionally, the Pi Network's absence from top-tier crypto exchanges further compounds these issues. The lack of listings on major exchanges limits the liquidity options for Pi Coin users, making it difficult for them to realize or trade the value of their holdings. This absence could be due to the project's centralized nature and lack of compliance with standard listing practices.
Despite these criticisms, the analyst has suggested a path forward for the Pi Core Team. They could start by releasing a clear roadmap, allowing independent audits, and decentralizing control over the token supply. Until these changes are made, potential investors are urged to approach the project with caution and conduct their own research.
The Pi Network was launched in 2019 as a mobile mining initiative aimed at making crypto more accessible to the average user. It quickly gained popularity and amassed a global user base. However, years later, it has yet to launch a public mainnet or secure listings on some exchanges. The debate over Pi’s legitimacy continues to divide the crypto community, with some users remaining optimistic about its potential while critics argue that the lack of transparency and decentralization makes it a risky bet.

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