Unrest has yet again gripped the Pi Network, as a series of serious allegations has been levied against one of the most watched crypto projects for 2025. After having been touted as anti-centralization just bordering anarchy, it has over 56% in a week, leading to a heated discussion of whether it is just a burner or a calculated rug pull.
Allegations Trigger Panic: Atlas Labels Pi Network a “Scam”
Atlas, a crypto analyst, started the controversy by dubbing Pi Network “The Biggest RUG of 2025” in light of what he considers to be coordinated insider dumps. The two-day-long investigative saga unraveled the outsized dump of 12 million tokens that knocked down half of Pi’s market price within just a few hours. With accompanying charts and screenshots alleging inside selling, the post went viral, causing an immediate panic among sell orders and wild volatility across trading pairs.
The bold shadows of a threatening red “SCAM” watermark over a plunging price chart only served to deepen the fear and suspicion over the transparency of the Pi Core Team (PCT) and its long-term intentions.
Token Unlock Adds Fuel to the Fire
With the market shock, 7.4 million tokens being unlocked today, entering the market as more sell-side pressure to an already fragile market. Lock-up events tend to unsettle investors-especially when there’s no clear word from developers or roadmaps-and this one was no exception.
Source: Piscan.io
The circulating supply has exploded, but confidence has not followed suit. Instead of contributing to development or liquidity, the unlocked tokens may be making it to exchange listings or private wallets, thereby stirring speculation of a coordinated exit.
Dr. Altcoin Demands Transparency in Wallet Activity
Fueling the firestorm, blockchain researcher Dr. Altcoin (@Dr_Picoin) made public unusual wallet transactions in the Pi Foundation. According to on-chain metrics, more than 5.4 billion were moved from “Wallet 1” to “Wallet 3” five months ago, then more than 1 billion were moved to “Wallet 2” in batches as large as 100 million. Yet today, Wallet 2 unbelievably holds only 24 million.
Dr. Altcoin is calling for accountability and a public audit. “The Pi Community has a right to real answers,” he posted. His post has been trending within Pi Telegram and X communities, fueling calls for transparency in token movements and allocations.
Exchange Withdrawals Spike as Private Wallet Activity Surges
Adding to the problems, @PiNewsMedia saw over 14 million tokens being sent from exchanges like OKX to addresses marked private, adding to fresh fears of off-screen activity. The largest single transfer, over 14.4 million, went to a wallet named “GASW8.JZADQM”, signaling serious repositioning by insiders or whales.
These kinds of transfers usually indicate either imminent announcements—or dump preparations ahead of time.
Price Performance: PI Falls from Glory After Brief Rally
The altcoin dramatic fall followed a surprising short-term rally earlier this month. On May 8, the token traded at $0.58 before surging to $1.67 by May 12, driven by hype surrounding its Consensus 2025 presence and a rumored $100 million ecosystem fund. But the momentum didn’t last.
By May 17, the coins had dropped to $0.66, erasing most of its profits. Trying its lukewarm hand at a comeback and trading at approximately $0.7354, the altcoin is still struggling, however. Many now view the ecosystem fund not as an indicator of growth but as a stalling measure—delaying the much-anticipated open mainnet once again.
Source: CoinMarketCap
Pi Network Price Prediction: What’s Next For Altcoin?
Looking forward, Pi Network has two very different options. If the Core Team can offer transparent evidence of funds, wallet usage, and a clear roadmap towards open mainnet access, the altcoin might bounce back towards the $1.00–$1.20 mark during Q3 2025. But ongoing lack of transparency, token dumping, and insider trading could drive the price down below $0.50, particularly if overall market confidence diminishes.
Technical indicators remain bearish, with RSI below 40 and MACD printing red. Support is at $0.60, whereas resistance is at about $0.85. A close below support may trigger a fall further into $0.40—a psychologically significant level.
