How Whales and Exchanges Manipulate the Pi Network and Other Cryptocurrencies

As the popularity of Pi Network continues to grow, so does the interest of major cryptocurrency exchanges and large investors—often referred to as ‘whales’—in influencing its market dynamics. For newcomers to the crypto space, understanding these manipulation tactics is essential to avoid falling into common pitfalls.

The Hidden Agenda of Exchanges

Cryptocurrency exchanges have been employing various strategies to accumulate Pi coins from unsuspecting holders. One such tactic is the introduction of deposit incentives, such as Bitget’s recent promotion where users deposit 30 Pi and receive a 12 Pi bonus. While this may seem like an attractive offer, the underlying motive is far more strategic.

When exchanges encourage users to send Pi coins back into their platforms, they are essentially regaining control over the liquidity of Pi. This allows them to influence the market price. By temporarily inflating the value of Pi through artificial price pumps, exchanges create an illusion of strong demand, enticing holders to sell their assets for a perceived profit.

The Price Manipulation Cycle

Once a significant amount of Pi has been deposited into exchanges, the manipulation process begins. Here’s how it unfolds:

1. Price Pumping: Exchanges artificially increase the value of Pi to encourage selling. Many holders, seeing the rising price, assume it is an ideal opportunity to cash out.
2. Controlled Selling (Dumping): As more people deposit and sell their Pi, exchanges begin to offload their holdings gradually, causing the price to decline.
3. Panic Selling: New and inexperienced investors panic when they see the price dropping, fearing further losses. This mass selling further drives the price down.
4. Stealth Accumulation: While the price is declining, large players (whales) and exchanges quietly start buying Pi at lower prices, ensuring they maintain control over its supply.
5. Support and Resistance Play: Over time, Pi’s price stabilizes at certain levels, forming what traders call ‘support’ and ‘resistance’ zones. For instance, Pi may struggle to break past $1.8 (resistance) while staying above $1.5 (support). Exchanges may slightly push prices above resistance to trigger more selling from holders before once again dumping, creating further panic.
6. Major Price Crash: At a strategic point, exchanges initiate a significant price drop—sometimes as much as 30%—to instill extreme fear in the market. Many holders regret not selling earlier, reinforcing their belief that selling at minor peaks is the safest option.
7. Long-Term Accumulation: After months of price suppression, when most holders have given up and sold their Pi at lower rates, the real price surge begins. At this point, early manipulators who accumulated Pi at low prices benefit from exponential gains.

Lessons for Pi Holders and Crypto Traders

For new investors in the Pi Network and broader cryptocurrency market, understanding these tactics is crucial. The key takeaway is simple: avoid panic-selling based on short-term price fluctuations orchestrated by external players.

Holding onto Pi rather than selling at undervalued prices ensures that community members retain control over their assets instead of handing them over to exchanges and whales.

As Pi Network moves toward further decentralization, its value will ultimately be determined by real-world adoption and utility rather than market manipulation. Until then, staying informed and making strategic decisions is the best way to safeguard your holdings.

A wise Pi Network pioneer will recognize this strategy and resist falling into the trap.

HOW THE WHALE 🐋 AND EXCHANGES ARE MANIPULATING $PI AND SOME OTHER "GOOD" CRYPTO

Since we have a lot of newbies to crypto holding $pi right now, I think this information will help you, just make sure you Like and repost this when you read finish

[A Good #PiNetwork pioneer… pic.twitter.com/CFytbKN2ta

— Bankey Web3 👨‍💻 (@pi_gossip) March 7, 2025

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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