Pi Network Under Fire: $18 Billion Wipeout Rekindles Rug Pull Allegations

In a dramatic turn of events, Pi Network has found itself at the center of renewed controversy following a staggering $18 billion loss in market value over the past six months. Once hailed as a revolutionary mobile-first crypto project, Pi Network is now facing mounting criticism from its own community and industry observers. The sharp decline in token price and lack of liquidity have reignited accusations of a potential rug pull—a term used in crypto circles to describe a sudden and deliberate abandonment of a project after extracting value.

According to Coinpedia Fintech News, Pi Network’s token has plummeted from a high of $2.98 in February 2025 to approximately $0.26 by October, erasing billions in value and triggering widespread concern.

The Collapse: Numbers That Sparked Outrage

The scale of the decline is difficult to ignore. A 90% drop in token value over half a year has left many Pioneers—users who mined Picoin for years—feeling betrayed. While major cryptocurrencies like Bitcoin and Ethereum have shown resilience, Pi Network’s trajectory has diverged sharply, raising questions about its internal management and long-term viability.

The losses have led to frustration among users who were unable to trade their tokens at the values once promised. Many report that despite passing KYC and participating actively, they still lack access to meaningful liquidity or exchange listings.

Community Voices: From Loyalty to Disillusionment

Crypto commentator @MrSpockApe, a long-time follower of Pi Network, voiced what many in the community have been reluctant to say: “The sharp 90% drop in the price of the Pi Network token from its February 27 peak was a virtual rug being pulled out. Users don’t get rich from Pi, only the core team members do”.

This sentiment reflects a growing divide between the Pi Core Team and its user base. While some still hold onto the belief in a fixed value of $314,159 per coin—a claim widely dismissed by experts—others are demanding transparency and accountability.

Tokenomics and Insider Concerns

One of the most contentious issues is the handling of token supply and migration. Critics argue that changes to token release rules have been used to stretch out supply and maintain user engagement without delivering real utility. Blockchain data suggests that large volumes of tokens may have been sold privately, fueling speculation about insider activity.

The Pi Foundation reportedly holds around 90 billion coins, a concentration that has raised alarms about centralization and potential manipulation. Without clear disclosures on fundraising, token distribution, and internal governance, trust in the project continues to erode.

Lack of Exchange Listings and Institutional Support

Despite claims of over 14 million users passing KYC, Pi Network has yet to secure listings on major exchanges like Binance or Coinbase. These platforms have cited concerns over transparency, centralization, and regulatory compliance.

Institutional adoption also appears distant. Without stronger safeguards and clearer tokenomics, Pi Network struggles to attract serious investment. The absence of liquidity and the inability to withdraw or trade tokens freely have left many users questioning the value of their participation.

Pi Network News: Accusations of Rug Pull Resurface as Token Sheds $18 Billion in Six Months Source: Coinpedia Fintech News https://t.co/Xw3y1pNO2l

— Mr Spock 𝛑 (@MrSpockApe) October 6, 2025

The Role of Speculation and the Exit of Key Players

Adding to the pressure was the exit of an anonymous whale who had accumulated over 383 million Pi coins. This departure removed a major source of price support, further accelerating the token’s decline. The lack of demand and the inability to sustain market interest have compounded the project’s challenges.

While some argue that Pi Network never raised initial capital and therefore cannot be classified as a rug pull in the traditional sense, the concentration of tokens and lack of utility have led many to view the situation as a betrayal of community trust.

Regulatory Oversight and the Path Forward

To date, no formal investigation has been launched by regulatory bodies, highlighting the gaps in oversight for crypto projects that operate outside conventional fundraising mechanisms. Industry experts suggest that increased regulation may be necessary to prevent similar incidents in the future.

For Pi Network, the path forward requires urgent action. Transparency in token distribution, clear communication from the Core Team, and meaningful exchange integration are essential to restoring credibility.

Conclusion: A Critical Crossroads

Pi Network’s journey has reached a critical crossroads. What began as a promising experiment in mobile crypto mining now faces existential questions about its structure, leadership, and future. The $18 billion loss and resurfacing of rug pull allegations have shaken the community and cast doubt on the project’s long-term prospects.

Whether Pi Network can recover will depend on its ability to rebuild trust, deliver utility, and embrace transparency. Until then, Pioneers and observers alike will continue to watch closely, hoping that the next chapter in the Pi Chronicles is one of redemption—not retreat.

Writer @Ellena

Erlin 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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