Pi Token Drops 80% From High, Founders Hold 20% of Supply

The Pi coin, which gained significant attention following its mainnet launch in February, has since experienced a substantial decline in value. The token's price has dropped nearly 80% from its all-time high, raising concerns within the community about the lack of decentralization and the concentration of remaining tokens in the hands of developers. The Pi project's founders, Kokkalis and Fan, hold a significant portion of the tokens, estimated to be worth around $13.2 billion. This holding has sparked worries about the centralization of the Pi network, as the founders' control over such a large portion of the tokens could influence the market and the project's direction.

The Pi network has a maximum supply of nearly 100 billion tokens. Out of this supply, 65 billion have been distributed to community members and Pioneers. The remaining tokens are allocated to the Pi Network Foundation and the core team, including the founders. The Pi Network Foundation holds 10 billion tokens, valued at around $6.6 billion, while the core team controls nearly 20 billion tokens, also valued at approximately $13.2 billion. This allocation raises questions about the decentralization of the Pi network, as the founders' control over such a large portion of the tokens could potentially influence the market and the project's direction.

The Pi token's price has been consolidating, with the price movement recorded around the $0.65 level, marking strong support. After a previous price surge to near the $0.75 mark, the Pi token experienced a sharp drop in value. The bearish momentum has slowed in the support range of $0.60 and $0.65, leading to a period of indecision in the market, with neither buyers nor sellers dominating the price action. The Relative Strength Index (RSI) has gone below the 50 neutral boundary, signaling a slightly bearish trend. The RSI is crossing under the RSI moving average, which is a bearish sign. The ADX standing near the 24 score signals that the trend is near its end, as the strength under a 25 score is considered weak.

The Pi network's growth has led to an increase in the net worth of its founders, a common occurrence in the crypto world. However, the centralized nature of Pi reserves presents a worrying problem. The concentration of tokens in the hands of the founders raises concerns about the decentralization of the Pi network and the potential influence of the founders on the market and the project's direction. The Pi token's price decline and the centralized nature of the Pi network have sparked worries within the community about the project's future and the potential for further price drops.