Pi Network Under Fire: 12M Token Dump Triggers 50% Price Crash Amid Scam Allegations

Pi Network, once celebrated in the crypto space with over 12 million users, is now embroiled in scam allegations. Blockchain investigator Atlas uncovered data showing 12 million PI tokens were offloaded, coinciding with a 50% price plunge. The token had surged 113% to $1.6704 on May 12 before crashing to $0.7364 by May 20.

Critics point to multiple red flags including lack of a working product, centralized control, and questionable token movements. "This mirrors classic pump-and-dump schemes," Atlas stated, highlighting the correlation between large sell-offs and price drops. Despite initial Optimism around its long-awaited mainnet launch, the network’s volatility has damaged credibility.

While Pi remains unlisted on major exchanges like Binance or Coinbase, this incident underscores the risks of unvetted crypto projects. The market continues to struggle with separating genuine innovation from exploitation as regulatory oversight tightens.