The PI networks are currently facing significant criticism as the Native Token PI has decreased by over 50% in just five days.
This sharp drop has led to allegations of a possible rug pull, especially after users noticed substantial token transfers connected to insiders of the project.
Concerns Arise Over 12 Million Token Transfer
On May 17, a notable community member, Dr. Picoin, made serious accusations against the PI Core Team, claiming they sold off millions of PI tokens at the recent price peak of nearly $1.60.
He referenced blockchain data showing a transfer of 12 million PIs, suggesting that the team might have manipulated prices while focusing on project announcements.
“The core team sold off hundreds of millions, perhaps tens of millions, of PIs at their peak. During that time, the community was sidetracked by the illusion of announcements and progress,” Dr. Picoin stated.
Though his claims remain unverified, they quickly spread and ignited fears among token holders. This situation has raised questions about transparency and trust in the project.
While some users expressed worries about insider profits, others dismissed these claims as misleading.
One supporter discussed how certain transactions were linked to the transition of user balances from the testnet to the mainnet. According to them, the wallet address involved, GABT7EMP, has long been identified as a distribution wallet for operational tasks.
“They say that PIs are on sale. That’s just not accurate. Only people misunderstanding this wallet will be misled. Don’t fall for it,” they added.
This controversy coincided with the much-anticipated appearance of PI Networks at the Consensus 2025 event.
The teaser had many looking forward to a mainnet launch and a variety of developments. Instead, the core team revealed a new $100 million ecosystem fund aimed at supporting builders within the PI community.
This announcement, while strategic for the project’s long-term growth, may have added to user confusion and contributed to the decline in token price.
“The community was led to believe they were on the verge of a complete mainnet launch with numerous high-quality dapps, but there were no significant updates on May 14th,” it was noted.
Despite the turmoil, PI co-founder Dr. Nicolas Kokkalis took the opportunity at the conference to outline future plans for the PI Network. He talked about incorporating artificial intelligence and distributed identity tools for Web3 applications.
Kokkalis also confirmed the decommissioning of the network’s central nodes, marking progress towards full decentralization. He introduced Horizon upgrades for PI node operators, seen as a pivotal step in preparing for the mainnet.
