Analyst Warns: “Pi Network Could Be the Next Name After the Collapse of Mantra”
The catastrophic collapse of the OM token from the Mantra project, with its value dropping by over 90% in just a few minutes and wiping out billions of dollars in market capitalization, created a major shock in the cryptocurrency industry. This incident, viewed as a wake-up call, raised profound concerns about similar vulnerabilities in many other projects, especially Pi Network – a name that is drawing significant attention from the community.
The Wake-Up Call from the Collapse of Mantra
The Mantra incident dealt a heavy blow to market confidence, while exposing the potential risks of a lack of transparency and solid protective measures. The plummeting price of OM within an hour led many critics to point out suspicious signs such as market manipulation, opaque token management, and centralized control issues – factors that contributed to the rapid collapse.
With over $5.5 billion in value wiped out, this incident has become a typical example of the severe consequences that can occur in an environment lacking effective risk management measures. Not only did it leave investors stunned, but the incident also put the industry on high alert.
Transparency and Protection Measures: Growing Concerns
Dr. Altcoin, one of the leading cryptocurrency analysts, pointed out alarming similarities between the collapse of OM and the current state of Pi Network. He warned that without decisive actions, the Pi Core Team (PCT) may be approaching a similar fate.
As Pi Network enters the Open Mainnet phase, questions surrounding the project's transparency are becoming increasingly intense. Critics are concerned that the lack of robust ecosystem protections could expose Pi Network to similar risks as OM. Some validators within the Pi ecosystem have even recommended that users withdraw funds from centralized platforms to reduce the risk of price manipulation.
The Future of Pi Network: Challenges and Opportunities
Despite the increasing warnings, there is still a segment of the Pi Network community that believes in the project's potential. They cite the gradual token release strategy, increasing integration with platforms like Chainlink, and new utility products like Pi Ads. According to supporters, the stable token unlocking schedule along with a strong user base could help Pi Network avoid major sell-offs like those that occurred with OM.
However, the message from industry experts remains clear: if Pi Network does not quickly improve transparency and implement strong technical and regulatory protective measures, the collapse of OM could repeat itself – and this time, the cost could be one of the most promising projects in the cryptocurrency market.