Investigative information shared by an X account, called 'Atlas', has shed light on a complex web of hype, vague promises, centralized control, and insider trading that may have defrauded millions of hopeful users.

The Rise of Pi Network

Launched with a bold vision to democratize cryptocurrency mining via smartphones, Pi Network quickly attracted millions. The promise? Free tokens mined through a simple mobile app and future rewards when the project goes live. Over time, increasing delays ensued as the team postponed the mainnet launch and maintained a closed beta version. However, trust in the project remains.

According to Atlas, by early 2025, Pi finally opened Mainnet and began trading. Speculation and optimism drove the token to surge from $0.66 to $1.60. However, beneath the surface, troubling signs began to emerge.

The Collapse

In May 2025, just after Pi Network made a splash at Consensus 2025, the price dropped over 50% within days, he stated. This timing coincidentally matched the announcement of a $100 million VC fund—an action many view as a distraction from the lack of actual technological progress.

While users await functional dApps or decentralized milestones, insiders have acted.

Insider Disclosure

Dr. Picoin, a blockchain analyst and community figure, revealed a transfer of 12 million Pi tokens linked to a wallet—GABT7EMP—allegedly controlled by the Pi Core Team.

His analysis shows that tokens were offloaded right at the peak price. Blockchain data from Piscan confirmed a massive outflow from this wallet at the time the market was most active.

"They sold while you were distracted by the hype and announcements," Dr. Picoin wrote. This revelation triggered a wave of panic and accelerated the collapse.

The Deceptive Pattern

According to Atlas's deep theme, the Pi Network team has consistently used distraction tactics to maintain community interest. Instead of delivering 100 dApps and decentralized governance as expected, they made vague promises like 'Web3 integration' and VC funding rounds.

Meanwhile, important questions remain unanswered:

  • Why does the token transfer perfectly coincide with the incident?

  • Why is the transfer poorly communicated if it is just a process of moving from testnet to mainnet?

  • Why has governance and auditing not yet been implemented?

The Red Flags in the Overlooked Past

This is not the first controversy surrounding Pi Network. In 2021, 17GB of user data from Vietnam leaked online. Chinese regulators warned early on that Pi's 'free mining' model could be a front for data collection. The CEO of Bybit even labeled the project a scam years ago.

Despite these warnings, Pi has increased its user base to over 60 million. But Atlas points out that the number of active wallets remains suspiciously low—raising doubts about real adoption compared to inflated user metrics.

A Funnel, Not a Blockchain?

All these findings raise an important question: Is Pi Network truly a blockchain project or merely a smart marketing channel driven by referrals and speculation?

Still no DAO, no open source code, and no functional ecosystem. Core control remains centralized and growth is driven by invitation codes rather than utility. Atlas concludes, "This is not innovation but marketing."