The Pi Network is facing criticism from the community after its token PI lost over 50% of its value in five days.
The sharp price drop spurred accusations of possible fraudulent capital extraction due to insider token movements.
The movement of 12 million tokens raises concerns of fraud in the Pi network.
On May 17, Dr. Picoin, a respected community member, accused the core Pi team of selling millions of PI tokens during the price peak near $1.60.
He referred to blockchain data about the movement of 12 million tokens, claiming that the team manipulated the price during the community's distraction by announcements. Unverified accusations quickly spread online, causing panic among holders and debates about the project's transparency.
Some users supported concerns about insider profits, while others dismissed the accusations as misleading.
A Pi supporter explained that the transactions are related to migrating balances from the testnet to the mainnet, and the wallet GABT7EMP is used for operational purposes.
According to the account, the wallet address at the center of attention is GABT7EMP. It has long been marked as a distribution wallet used for operational purposes.
"They say Pi is being sold. That's not true. Only those who don't understand this wallet will be misled. Don't be one of them. They are using Piscan, which shows outflow, to mislead you," the account stated.
This controversy arose shortly after the long-awaited appearance of Pi Network at Consensus 2025.
Teasers led many to expect the mainnet launch and widespread deployment of dApps. Instead, the core team introduced Pi Network Ventures — a $100 million ecosystem fund aimed at supporting developers in the Pi community. While the announcement was a strategic move for the project's long-term growth, it disappointed many users and likely contributed to the sell-off.
"The community believed that they were moving towards a full mainnet launch with 100 high-quality DApps — but instead, on May 14, there was no major update. Only Pi Network Ventures," Dr. Picoin noted.
Despite the consequences, Pi co-founder Dr. Nicolas Kokkalis used the conference to emphasize the future direction of the Pi Network. He shared plans to integrate artificial intelligence and decentralized identity tools for Web3 applications.
Kokkalis also confirmed that the central node of the network has been decommissioned, paving the way for full decentralization. Furthermore, he presented the Horizon update for Pi node operators, which is a critical step towards mainnet readiness.#BinanceSquare #Write2Earn #Binance #crypto #trading $FDUSD
