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The Pi Network is facing renewed skepticism after a crypto analyst, known as Atlas, dubbed the project the “biggest rug pull of 2025.” His remarks followed a staggering 12 million Pi token sell-off that slashed the token’s value by more than 50% within hours. The timing of this move—shortly after Pi peaked at $1.60 amid speculative excitement—has sparked serious concerns over potential insider manipulation.
Major Dump Triggers Market Crash and Fuels Allegations
Posting on X, Atlas claimed that Pi Network’s recent volatility was not coincidental. The anonymous unloading of 12 million tokens triggered a steep market downturn, which Atlas believes points to deliberate manipulation. The sell-off occurred just days after Pi reached a local high, a surge that was widely attributed to rumors of a possible Binance listing and a major announcement scheduled for mid-May.
On May 19, Atlas renewed his long-standing criticism of the project, citing an ongoing investigation by fellow analyst Dr. Picoin. According to Atlas, evidence suggests that the wallet responsible for the dump—identified as GABT7EMP—has ties to Pi Network’s core operations. He argued that large outflows from this address coincided perfectly with the local market peak, resembling what he described as “a classic insider exit strategy.”
Source: create.vista.com
Hype vs. Reality: A $100 Million Fund Sparks Disappointment
Prior to the crash, the Pi Network had captured the crypto market’s attention, even entering the top 20 cryptocurrencies by market cap. Much of the momentum came from rumors of a major breakthrough or listing. However, the May 14 announcement turned out to be the launch of a $100 million ecosystem fund—falling short of inflated community expectations. The market reacted swiftly, with Pi dropping over 25% within a day.
Critics, including some within the Pi community, accused the project’s leadership of manufacturing hype without delivering meaningful progress. One supporter warned that setting such high expectations for a single announcement could damage the project’s credibility if it failed to meet the community’s hopes.
As of 4:45 a.m. EST on May 20, Pi was trading at around $0.74—down 33% over the past week and less than half of its recent high.
Core Team Remains Silent Amid Accusations
While the Pi Network core team has not directly addressed the allegations, a supporter-run account called The Times of Pi Network offered some explanation. In a post on X, the account stated that the Pi Core Team operates several wallets for routine functions, such as funding development, providing exchange liquidity, covering expenses, and supporting community initiatives.
Atlas, however, dismissed this clarification. He argued that if the token transfers were part of a planned transition from testnet to mainnet, the team should have communicated this clearly to avoid triggering market panic. The lack of transparency, he claimed, only reinforces concerns that insiders may have taken advantage of peak liquidity to exit their positions.
As scrutiny intensifies, investors are demanding greater accountability and transparency from the Pi Network, especially in light of recent market behavior and the lack of formal communication from its leadership.
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