Pi Network Draws Sharp Criticism from Crypto Analyst Szymanski Over Centralization

A primary concern, according to Szymanski, is that the Pi Network development team; the Pi Core Team, reportedly maintains control over nearly 89% of the total Pi Coin supply.

Crypto analyst Szymanski has slammed Pi Network for what he describes as an "alarming" level of centralization, highlighting that the project's development team, known as the Pi Core Team, reportedly holds nearly 89% of the total Pi Coin supply.

This situation has prompted concerns among some market watchers over a potential, severe collapse.

Analyst Sounds Alarm Over Pi Network's Token Distribution

In a tweet, Szymanski highlighted that out of the 100 billion Pi tokens that will ever exist, only 11 billion have been released to date. Of this, 7.1 billion tokens are in circulation, while 89 billion remain locked in team wallets.

"This level of centralization is a ticking time bomb," Szymanski warned.

According to the analyst, any large-scale liquidation, whether planned or forced, could ultimately cause a market crash similar to what occurred during the Terra Luna debacle in 2022.

Meanwhile, Pi is currently trading at $0.8672, reflecting a 0.17% uptick in the past 24 hours. The token has experienced a 17% rise over the past week, furthering a monthly surge of 40%.

Lack of Audits and Transparency Deepen Concerns

Szymanski's critique went beyond token distribution, extending to the network's lack of transparency and absence of third-party audits. Unlike Bitcoin, which relies on decentralized mining, all Pi tokens are pre-minted and stored in a single centralized wallet managed by the Pi Core Team.

"They haven't audited their code or smart contracts," Szymanski stated, adding that this lack of auditability has fueled speculation and skepticism within the crypto community.

According to the analyst, the Pi team has not subjected its code or smart contracts to any public or professional review.

Major Crypto Exchanges Keep Distance, Limiting Pi Coin Liquidity

Further compounding these issues, as Szymanski observed, is Pi Network's continued absence from top-tier crypto exchanges like Binance, Coinbase, Kraken, or Bybit.

Szymanski suggested that this could be due to the project's centralized nature and lack of compliance with standard listing practices.

However, without listings on such major crypto exchanges, Pi Coin users find themselves with very limited liquidity options and few avenues to realize or trade the value of their holdings.

Szymanski Outlines Constructive Path for Pi Network: Roadmap, Audits, Decentralization

Despite these strong criticisms, Szymanski did offer a path forward for the Pi Core Team to address these concerns and build trust. He suggested they could start by releasing a clear roadmap, allowing independent audits, and decentralizing control over the token supply.

"To potential investors, do your own research and use Web3 tools to evaluate the project objectively before making any decisions," he advised.

Pi Network Project Background and Market Context

Pi Network first emerged in 2019 with its mobile mining initiative that aimed to make crypto more accessible to the average user. It quickly gained popularity, managing to amass a global user base. However, years later, it has yet to launch a public mainnet or secure listing on some exchanges.

The debate over Pi's legitimacy continues to divide the crypto community. Some users remain optimistic about its potential, while critics argue that the lack of transparency and decentralization makes it a risky bet.