Is Pi Network Price at Risk Amid Centralization Problem?
A major report in this regard :
"A good cryptocurrency should have several important characteristics, one of which is decentralization. This is what separates these coins from fiat currencies controlled by central banks.
Pi Network faces a similar problem, as it resembles a central bank that controls supply. Data shows that there are now 7.16 billion Pi coins in circulation, with the rest, 92.8 billion, locked.
Pi Network differs from other cryptocurrencies in that all the tokens are pre-mined and locked in wallets controlled by the Pi Foundation. This is different from Bitcoin, where new coins are mined by solving complex mathematical calculations. It also differs from Ethereum and other proof-of-stake coins.
The issue with Pi Network’s model is that an obscure foundation controls all coins. No one knows who the members are, and the pioneers, who in theory control most of the tokens, are not represented.
Pi Network’s diluted valuation is over $73 billion, making it a big player in the crypto market. As such, one solution would be to hire a top-4 auditing company like Deloitte or PwC to audit these tokens regularly.
Another solution would be a pledge to decentralize the network fully and reduce the power of the foundation.
This ongoing centralization also puts the community at risk for two main reasons. First, as we saw last week with Coinbase, sabotage or an insider leak is a possibility. In this case, something can happen to the foundation’s wallet, leading to a token dump".
