Pi Network Faces Renewed Backlash from Its Community as PI Token Plunges Over 50%

Pi Network is facing renewed backlash from its community after its native token, PI, plunged over 50% in the past five days.

The native token of Pi Network (PI) has plunged more than 50% in the past five days, sparking renewed backlash from the community against the project.

The sharp decline has raised fresh concerns of a potential rug pull as users uncovered large token transfers linked to project insiders, which has chipped away at trust in the project.

The core team of Pi Network is facing backlash after a respected community member, known as Dr. Picoin, made a serious allegation.

According to Dr. Picoin, the Pi Core Team offloaded millions of PI tokens during the recent price peak near $1.60. The respected community member cited blockchain data that showed a 12 million PI transfer.

However, Dr. Picoin claimed the team was manipulating the price while the community was focused on project announcements.

“The Core Team sold tens of millions, if not hundreds of millions, of Pi at the peak — all while the community was distracted by announcements and the illusion of progress,” he alleged.

His claims, which remain unverified, quickly spread online and fueled panic among PI holders. The allegations also triggered fresh debate over transparency and trust within the project.

While some users shared concerns of insider profit-taking, others dismissed the accusations as misleading.

One Pi supporter explained that the transactions were related to the migration of user balances from testnet to mainnet. The supporter added that the wallet address at the center of the issue, GABT7EMP, is a distribution wallet used for operational purposes.

“They are saying Pi is being sold. not true. Only those who dont understand this wallet will be mislead. Dont be one of them. They are using Piscan which shows outflow to delude you,” the account stated.

The controversy comes shortly after Pi Network’s appearance at Consensus 2025.

Many were expecting a mainnet launch and widespread dApp rollout, but instead, the core team announced Pi Network Ventures. The ecosystem fund will aim to support builders in the Pi community with $100 million.

While the announcement marks a strategic move for the project’s long-term growth, it deeply disappointed many users and likely contributed to the sell-off.

“The community believed they were heading toward a complete Mainnet launch with 100 high-quality DApps — but there was no major update on May 14th. Just Pi Network Ventures,” Dr. Picoin pointed out.

Despite the recent fallout, Pi co-founder Dr. Nicolas Kokkalis used the conference to spotlight the network’s future direction. He spoke about plans to integrate artificial intelligence and decentralized identity tools for Web3 applications.

Kokkalis also confirmed that the network’s central node has been decommissioned, paving the way for decentralization. Additionally, he introduced the Horizon upgrade for Pi Node operators, a critical step toward mainnet readiness.