PaiBi core team transfers 500 million coins, causing panic! $80 million internal reallocation, not a sell-off

The core team of Pi Network transferred 500 million tokens (worth $80 million), sparking panic, but this was actually an internal wallet allocation within the PI Foundation, not a sell-off. The 1.93 billion tokens unlocked in February—the largest ever—averaged 7 million per day (about $1.1 million). The price dropped 25% over the month to $0.1590, with a market cap of $1.4 billion.

Core Team Internal Transfer of 500 Million Pi Sparks Panic

(Source: PiScan)

According to Pi Scan data, a wallet named PI Foundation 1 transferred 500 million Pi tokens (worth over $80 million), prompting scrutiny of this large on-chain transaction. Interestingly, these funds did not flow into exchanges but instead moved into another internal wallet also labeled “PI Foundation 1.” This indicates the funds are for internal allocation rather than market sell-off.

Technically, this isn’t a sell, but the transfer of 500 million tokens still triggered strong community reactions. Main concerns include: Why is such a large internal transfer necessary? Is this preparation for future sell-offs? Does the transfer between internal wallets suggest chaotic fund management or lack of transparency? Without official detailed explanations, these questions are left to community speculation.

From a technical perspective, internal wallet transfers can have various reasons: first, to enhance security by dispersing funds into multiple cold wallets; second, to allocate funds for different purposes (operational expenses, ecosystem development, team incentives); third, to prepare for some large-scale event or partnership. However, Pi Network’s problem lies in the lack of transparent financial reporting and real-time communication. Every large transfer sparks panic among the community.

This transfer occurred after Pi core team released the latest updates. The team stated that over 16 million Pioneers have completed mainnet migration. They also confirmed that about 2.5 million users previously locked out due to security checks have been approved and can now migrate. Additionally, Pi Network’s core team announced that in the coming weeks, over 700,000 users will be able to apply for KYC. They are also testing a new reward distribution system for KYC verifiers. The plan is to expand this system more broadly by the end of March 2026.

Key Information on the 5 Billion Transfer Event

Transfer Size: 500 million Pi tokens, valued at $80 million

Nature of Transfer: Between internal wallets of PI Foundation 1, not into exchanges

Market Reaction: Not a sell-off but still caused panic; price remains under pressure

Official Explanation: Lacking detailed clarification; community can only speculate on purpose

The unfreezing of 2.5 million banned users is also noteworthy. These users were temporarily frozen due to security checks, and now being allowed to migrate means a large influx of Pi tokens into the market. Although these tokens require KYC and lock-up periods, they will ultimately increase circulating supply. Combined with the internal transfer of 500 million tokens and the upcoming large unlock, Pi faces multiple supply pressures stacking up.

Largest Unlock in History: 193 Million in February

Investors remain nervous about the upcoming large token unlock in February 2026. Pi Scan data shows over 193 million Pi tokens will unlock in February, worth more than $31 million. This is the largest planned unlock from now until October 2027. Over the next 30 days, an average of over 7 million Pi will unlock daily, roughly $1.1 million worth of supply entering the market each day.

This scale of unlocking is unprecedented in Pi’s history. The daily addition of 7 million tokens will exert continuous downward pressure on the price, especially amid weak market demand. Without corresponding demand growth to absorb this supply, a price decline seems almost inevitable. Worse, the February unlock is just the beginning; subsequent months will see varying unlock sizes, creating ongoing supply pressures that could long-term depress Pi’s price.

The unlocking mainly stems from early mining rewards and team-allocated vested tokens. As vesting periods expire, these tokens will gradually be released into the market. Pi Network’s tokenomics involve complex vesting and unlocking rules, designed to disperse releases over time to prevent sudden sell-offs. Still, even with dispersed releases, a monthly unlock of 193 million tokens is large enough to overwhelm the market.

派幣 Price has been under continuous volatility and selling pressure. Over the past month, Pi’s price has retraced over 25%. Currently, Pi trades around $0.1590, with a market cap of about $1.4 billion. This ongoing decline reflects market pessimism about Pi’s fundamentals and token economics. Every large transfer or unlock event by the core team further erodes market confidence.

Flood of Supply and Demand Drought: A Deadly Spiral

Pi currently faces a classic supply flood and demand drought spiral. On the supply side, the core team holds a massive 71 billion tokens that are continuously flowing out; the 193 million unlock in February and the future release of 2.5 million locked users’ tokens will add to this. On the demand side, there’s a lack of real use cases, low trading volume, and slowing new user growth.

When supply keeps increasing while demand fails to grow, the only outcome is price decline. Even worse, falling prices further undermine holder confidence, triggering more sell-offs and creating a self-reinforcing downward spiral. Unless Pi can launch major applications or secure institutional partnerships in the short term, reversing this spiral will be difficult.

Community sentiment shows that the 500 million transfer, though explained as internal allocation, still fuels unease. Many holders question: If not for selling, why conduct such large transfers during a price dip? The timing itself raises suspicion. Moreover, the news of 2.5 million users unlocking is positive on the surface, but markets are more concerned about how much additional sell pressure this will bring.

The upcoming KYC completion for 700,000 users and the new verifier reward system are efforts by the Pi team to offset sell pressure through ecosystem development. However, these measures need time to show results, and the February unlock peak is imminent. For Pi holders, the next month will be critical—whether they can hold the $0.15 psychological threshold will determine if Pi continues to bottom out or rebounds.

For potential investors, Pi currently presents high risk. The opacity of the 500 million internal transfer, the 193 million unlock pressure, and the 25% monthly decline paint a bleak picture of uncontrolled supply, weak demand, and price pressure. Unless you have strong confidence in Pi’s long-term value, participating now is more like catching a falling knife.