Pi Network Price Faces Challenges Amid Token Sales, Centralization, and Supply Concerns

Pi Network’s price continues to struggle, reflecting broader concerns within the project. As of Thursday, Pi Coin traded at 0.8100 dollars, slightly below this week’s high of 0.8610 dollars. The token is currently 51% below this month’s peak and 73% lower than its all-time high.

Despite the recent surge in Bitcoin and other altcoins, Pi Network’s performance remains subdued. Bitcoin recently reached record highs, and several altcoins saw double-digit gains, yet Pi Coin failed to capitalize on the bullish momentum. This lackluster performance follows last week’s announcement of Pi Network Ventures, a new initiative aiming to invest 100 million dollars into startups leveraging Pi technology to expand its ecosystem. While promising, this development has not alleviated ongoing concerns tied to the network.

Key Challenges Impacting Pi Network

Several issues are hindering Pi Network’s progress, including centralization, ongoing token unlocks, and limited listings on major exchanges. These factors have raised questions about the project’s transparency and long-term viability.

Lack of Transparency in Token Sales

One major concern is the lack of transparency surrounding Pi token sales by the Pi Foundation. Blockchain analyst Dr. Altcoin recently highlighted that the foundation allegedly created 22,000 wallets holding over 92 billion tokens. These wallets have reportedly been involved in significant transactions, including the transfer of 1.4 million tokens from a four-year-old wallet to a newly created one. These tokens were later sold on Gate.io, one of the few exchanges listing Pi Coin. Similar transactions have been identified using the PiScan platform.

“Foundation-controlled wallets reportedly hold more than 90 billion tokens, raising concerns about centralization and potential risks.”

Daily Token Unlocks and Supply Concerns

Another pressing issue is the daily token unlocks, which are increasing the circulating supply amid muted demand. Recent data indicates that 110 million coins will come online this month, followed by 254 million in June and 233 million in July. Over the next 12 months, the network plans to unlock 1.507 billion coins. This influx of tokens could further pressure the price if demand fails to match the growing supply.

Centralization Risks

Centralization remains a significant concern for Pi Network. Reports suggest that foundation-controlled wallets hold over 90 billion tokens, representing a substantial concentration of holdings. This raises potential risks for the network, particularly if vulnerabilities in security or governance arise.

Technical Analysis: Pi Network Price

Pi Coin’s technical outlook paints a bearish picture. On the four-hour chart, the token has dropped sharply from 1.6692 dollars last week to 0.8180 dollars, forming a bearish flag pattern. This continuation setup typically consists of a sharp decline (flagpole) followed by consolidation within parallel trendlines (the flag).

The flagpole began on May 12 and ended on May 17, and Pi Coin is currently forming the flag section of the pattern. If this structure plays out, a bearish breakdown may occur, with the next support level to watch at 0.6585 dollars, the low from May 17. A break below this level could open the door to further downside, potentially targeting 0.5545 dollars, the lowest point from April 29.

Investor Takeaways

For investors interested in Pi Network, it’s crucial to monitor key factors such as ongoing token unlocks, centralization concerns, and the lack of major exchange listings. These elements could influence the token’s price trajectory in the coming months.

Tips for Investors:

  • Evaluate the risks associated with centralization and transparency issues.
  • Monitor token unlock schedules to understand potential supply increases.
  • Analyze technical patterns like bearish flags for potential price movements.
  • Stay updated on Pi Network’s ecosystem developments, including Pi Ventures.

While Pi Network shows potential with initiatives like Pi Network Ventures, the unresolved challenges surrounding transparency, centralization, and token supply continue to weigh on its price performance.

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