The real reason behind the Pi Network core team's sale of 1.2 million Tokens has been revealed!

It is reported that the core team of Pi Network sold about 1.2 million Pi Tokens this week, raising concerns about the stability of the token. Pi Network itself struggles to maintain its value, and this latest action has made matters worse. Experts have observed that the team has no other options in terms of Liquidity, as the lack of utility or revenue generation mechanisms for Pi Network may make selling Tokens the only way to raise funds.

Pi Network Core Team 1.2 million Token sell shocks the market

It is reported that the core team of Pi Network sold approximately 1.2 million Pi Tokens on Wednesday, raising concerns about the stability of the Token. This sale occurred against a backdrop of the Pi Network already being in a price slump, and the selling pressure from the core team further intensified market panic. The 1.2 million Pi Tokens, calculated at the current price of $0.2011, amounts to a selling scale of about $241,300.

The Pi Network itself is difficult to maintain its value, and this latest move exacerbates the already weak market. The Token is currently hovering near new lows, highlighting the necessity for its sustainable growth. From a technical analysis perspective, the core team's dumping has created strong selling pressure in the market, with price support levels being continuously tested. If there is no effective buying support, it could trigger a deeper correction.

The core team sold off most of the Pi they held, which not only did not support demand or enhance its value. This behavior is completely contrary to the token management strategies of typical project teams. Usually, project teams choose to buy back or lock tokens when the token price is sluggish to stabilize market confidence. However, the Pi Network core team chose to dump at low prices, and this operation has sparked widespread questioning and dissatisfaction within the community.

“I have said many times that the reason our core team is selling Pi is that they have no other sources of income. The Pi Network has no real use and nothing that can generate income, so their only liquidity option is to sell Pi,” said a cryptocurrency commentator. This comment reveals the fundamental issue facing the Pi Network: the lack of a business model.

Experts have observed that the team may have almost no other options in terms of liquidity. Given that the Pi Network currently lacks utility or revenue mechanisms, selling tokens may be the only way for the team to raise funds. This dilemma is not uncommon in cryptocurrency projects, as many early projects face funding pressures during their development stages. However, the key issue is that the Pi Network has been in development for several years and has tens of millions of users, yet still fails to establish a sustainable business model.

Three Major Fatal Flaws of Pi Network

The challenges faced by Pi Network are structural, and analysts have pointed out several key areas where the project needs improvement. The first is the lack of real-world practicality. Introducing practical applications can drive adoption and demand, but Pi Network currently still lacks clear use cases. Although the project claims that Pi can be used for payments and value transfer, very few merchants actually accept Pi payments, and there is a lack of killer applications in the ecosystem.

Unlike the DeFi ecosystem of Ethereum, the high-performance applications of Solana, or the value storage narrative of Bitcoin, the value proposition of Pi Network has always been vague. It is neither the fastest blockchain nor the most secure, and certainly not the one with the richest ecosystem. This ambiguity in positioning makes it difficult for Pi to attract developers and enterprise users, thus failing to establish real demand.

The second issue is the problem of decentralization of power. Strengthening governance and network independence may enhance confidence. The consensus mechanism and governance structure of Pi Network have long been questioned, as the core team has too much control over the network. A truly decentralized blockchain should be community-driven, rather than dominated by a single team. When the core team can freely dump a large amount of tokens, the drawbacks of this centralization become apparent.

The third issue is a severe lack of transparency. Clearer communication regarding token transactions and decisions is crucial for credibility. The tokenomics of Pi Network has always lacked transparency, with key information such as total supply, circulating supply, team holdings, and lock-up plans not fully disclosed to the public. This recent dumping event of 1.2 million tokens is a direct consequence of the lack of transparency, with the community only finding out afterward, unable to predict or participate in the decision-making in advance.

Three Major Fatal Flaws of Pi Network:

Lack of Practicality: The absence of killer applications and real use cases, with demand unable to support prices.

Over-Centralization: The core team has too much control, and community governance is virtually non-existent.

Lack of Transparency: The token economics and team operations lack public disclosure.

If there are no practical applications or sources of income, this kind of dumping behavior may continue unless the ecosystem develops new ways to create value. This is the most concerning prediction, meaning that the dumping of 1.2 million Tokens may just be the beginning rather than the end. If the core team's operational funds continue to rely on Token dumping, the market will face ongoing selling pressure, making it difficult for prices to rebound.

Dr. Altcoin suggests token burn to rescue the market

(Source: CoinMarketCap)

Despite the challenges faced by Pi Network, cryptocurrency expert Dr. Altcoin continues to support it, urging the core team to take action immediately. When Pi hit a historic low for the first time in October, he suggested using a token burning mechanism to reduce supply and support the token's value. Token burning refers to the permanent removal of tokens from circulation, typically achieved by sending tokens to an inaccessible address.

The token burn mechanism has successful precedents in the cryptocurrency field. Binance's BNB undergoes quarterly burns, and each burn tends to drive up prices. Ethereum introduced a transaction fee burn mechanism after the EIP-1559 upgrade, making ETH a deflationary asset during certain periods. These cases prove that reducing supply can effectively support token value, provided that demand remains stable or increases.

However, the token burn may only be a temporary solution for Pi Network. If the core issues—lack of practicality and revenue sources—are not addressed, even if the price is supported in the short term through burning, the core team will still need funds to operate in the long run, which may lead to more selling. Therefore, token burning must be paired with ecological construction and business model innovation to have a real effect.

The suggestions from the Altcoin Doctor also include enhancing transparency and strengthening community governance. He believes that Pi Network should publicly disclose the team's holdings, future dumping plans, and the use of funds. Additionally, introducing a community voting mechanism that allows holders to have a say in major decisions can rebuild trust. While these measures may not immediately solve the price issue, they can lay the foundation for long-term development.

From the market reaction, this dumping event has already caused serious damage to the reputation of Pi Network. Social media is filled with users' disappointment and anger, with many early supporters stating they will exit the project. Once this collapse of trust occurs, repairing it will be extremely difficult. The core team of Pi Network needs to take swift action, not only to address the immediate liquidity crisis but also to systematically rebuild the project's value proposition and governance structure.

The Way Out of Pi Network and Investor Warnings

The future of Pi Network depends on its ability to launch meaningful application scenarios in the short term. Potential directions include: collaborating with e-commerce platforms to enable Pi payments, developing DeFi protocols based on Pi, and introducing enterprise-level users to use Pi for loyalty programs, etc. If these applications can be implemented, they will create real demand for Pi and reduce the core team's reliance on token dumping.

However, the reality is harsh. Pi Network has developed for many years, but has still not seen substantial ecological progress. This slow development speed stands in stark contrast to its massive user base. Many observers are skeptical that Pi Network may have lacked a clear technical roadmap and business plan from the beginning, with its user growth relying more on social viral growth and the appeal of “free mining” rather than real technological innovation or application value.

For investors and holders of Pi Network, this event serves as a serious warning. Before investing in any cryptocurrency project, it is essential to thoroughly research its technological capabilities, business model, team background, and Token economics. The case of Pi Network demonstrates that a large user base and community enthusiasm, if lacking substantial value creation and transparent governance, may ultimately just be a bubble. Carefully assessing the long-term sustainability of the project, rather than being misled by short-term market speculation or community sentiment, is key to protecting investments.