Some are concerned about the Pi Network after a crypto analyst pointed out that its high level of centralization could expose it to significant risks. According to crypto analyst Szymanski, almost 89 percent of all Pi tokens are in the hands of the Pi Core Team, leading users to worry about a significant fall in prices.
According to the analyst, out of the total 100 billion Pi, only 11 billion have been released. The latter, representing 93 percent of all Bitcoins, is not yet available and is in the hands of the team.
He stated that the situation was like a ticking time bomb, as any sudden hotel closures could lead to a significant crash for the industry. The effects of this could resemble what happened to Terra Luna last year, where the sudden drop in value brought losses to many cryptocurrencies.
Lack of External Audits and Exchange Listings Fuels Skepticism
Szymanski noted that there are not enough checks on Pi Network by third parties. Unlike most decentralized cryptocurrencies, all the Pi tokens are saved in a single wallet handled by the Pi Core Team before release.
No one has provided public audits and professional code reviews. Because leaders are not held responsible, people in the community are losing faith in the ability of investors to help.
Also, users cannot find Pi Coin to trade on Binance, Coinbase, Kraken, and Bybit. As a result, users can conduct a few trades with their tokens, making it more challenging to withdraw their profits.
According to the analyst, the fact that the project is centrally managed and might not fully comply with the rules likely led to it being rejected by top cryptocurrency exchanges.
Expert Outlines Measures Needed to Rebuild Market Confidence
Yet, Szymanski shared ideas for the Pi Core Team to reduce publicity problems. Chang urged the team to release a simple roadmap, welcome outside audits of its activities, and gradually give up control of the tokens.
According to him, the company should focus on these steps to make Pi Network become trusted and respected by most in the crypto community.
When it was launched in 2019, many people joined Pi Network thanks to its mobile mining feature. After many years, the public mainnet for the project has not been launched, and the listings are limited.
Although the price of the Pi Coin has reached $0.8672 lately, it is unclear if the coin will continue to succeed. Without actual improvements, lack of openness, problems with liquidity, and too much central control are the main topics in talks between investors.
Conclusion
When Pi Network does not make significant changes and fails to invite scrutiny, investors are unlikely to trust it. Internal actions may still seriously drop the economy if reform doesn’t happen.
