Pi Network Faces Scrutiny After Mantra Collapse, Price Vulnerable

In the wake of the Mantra collapse, which resulted in a loss of over $5.5 billion in market value within an hour, the crypto community is now focusing on Pi Network. Analysts are urging the Pi Core Team to prioritize transparency and implement robust safeguards as the network transitions to its Open Mainnet phase, to avoid a similar catastrophe.

Dr. Altcoin, a prominent crypto analyst, emphasized the urgency of stricter regulations following the Mantra incident. He highlighted that the Pi Core Team must improve communication, token mechanics, and Know Your Business (KYB) processes. Delays in KYB approvals and unclear token-locking mechanisms have already led some Pi ecosystem projects to seek alternatives, undermining community trust.

Despite the criticism, Pi Network supporters point to its slow token release, growing utility, and a user base nearing 60 million as reasons it may avoid a similar fate to Mantra. Recent integrations with Chainlink and new fiat on-ramps are seen as creating a "virtuous cycle" of adoption and utility. However, technical analysts warn that the Pi price, currently around $0.74, faces strong resistance and could be vulnerable to sharp pullbacks if transparency and security are not improved.

As Pi Network enters its most public phase, the industry is closely monitoring its progress. The network's ability to navigate the challenges that led to Mantra's downfall will be crucial. The concerns surrounding Pi's transparency and security have raised questions about its price stability, with analysts warning of potential volatility if these issues are not addressed promptly.