4 days ago
Pi Network’s autochthonal token PI has crashed astir 73% little than 1 period aft reaching its all-time precocious astatine $2.99 connected Feb. 26.
As of property time, Pi was trading astatine $0.81, inching person to its $0.70 motorboat terms connected Feb. 20.
The show is importantly beneath the crypto marketplace mean show successful the aforesaid period, arsenic altcoins corrected 6.9% connected average. This makes PI drawdown implicit 10x deeper than the remainder of the market.
PI has been facing unit from its ain token plan since users tin mint tokens and summation proviso by interacting with applications connected the network.
A Keyrock study published successful December 2024 pointed out that implicit 90% of token unlocks exert antagonistic terms pressure, with effects taking up to 30 days to materialize.
According to PiScan, the web volition contented implicit 102 cardinal PI tokens implicit the adjacent 30 days, averaging 3.4 cardinal daily. This would beryllium much than 1% of PI’s circulating supply.
At the existent terms of $0.81, the dollar-denominated proviso unit is $82.6 cardinal — astir $2.7 cardinal daily.
According to a Tokenomist report, Pi Network is liable for 4% of the $2 cardinal successful token unlocks scheduled for April.
Controversy astir PI
Pi Network has been criticized for respective reasons successful the weeks earlier and since its motorboat past month. Industry participants person raised concerns astir its operations resembling a multi-level selling scheme.
The project’s delayed mainnet motorboat and constricted details connected token inferior person exacerbated concerns astir whether Pi tin present connected its committedness of accessible, decentralized worth transfer.
Bybit CEO Ben Zhou precocious drew attraction to a study issued by Chinese instrumentality enforcement that described Pi arsenic fraudulent.
The study claimed that the task targeted susceptible populations, including aged users, by promising fiscal gain. It besides accused the web of allegedly harvesting its users’ idiosyncratic data.
The study further attributed fiscal losses, including pension depletion, to the project’s power successful China.
Separately, Moonrock Capital CEO Simon Dedic expressed skepticism implicit Pi’s reported $26 cardinal afloat diluted valuation and claims that 60% of the proviso is already successful circulation.
Dedic said that the task “has built a beardown cult pursuing among non-crypto users who shill it purely for fiscal reasons.” He further alleged that Pi Network was a “giant Ponzi” that achieved virality done promises of “free money.”
Pi denies allegations
In a nationalist connection issued connected Feb. 22, Pi Network rejected the allegations and clarified its presumption regarding the Chinese constabulary report.
The squad stated that the study referred to unauthorized 3rd parties falsely associating themselves with Pi and that nary authorities had contacted Pi Network itself regarding the matter.
The task reiterated that it is not affiliated with those actors and emphasized its volition to motorboat responsibly.
The station Pi Network’s autochthonal token falls 73% from ATH amid rising supply appeared archetypal connected CryptoSlate.
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