Pi Network Faces Allegations of Insider Selling After Price Drops 50%

Pi Network is facing new opposition from the community after its native token, PI, dropped more than 50% in the past five days.

This sharp decline has raised new allegations of potential fraud, as users discovered large token transactions involving project insiders.

Transfer of 12 million tokens raises rug pull concerns for Pi Network

On May 17, 2025, a respected community member known as Dr. Picoin made serious allegations against the Pi Core Team. He claimed that the team sold millions of PI tokens during the recent price peak, near $1.60.

He cited blockchain data showing a transaction transferring 12 million PI and argued that the team manipulated prices while the community focused on project announcements.

"The core team sold tens of millions, if not hundreds of millions, of Pi at its peak — while the community was distracted by announcements and illusions of progress," Dr. Picoin alleged.

His allegations, though unverified, quickly spread online and caused panic among token holders. These accusations also triggered discussions about transparency and trust in the project.

While some users are concerned about insiders profiting, others dismiss the allegations as misleading.

A Pi supporter argued that these transactions relate to transferring user balances from testnet to mainnet.

According to this account, the central wallet address at the heart of the issue is GABT7EMP. It has long been labeled as a distribution wallet for operational purposes.

"They are saying Pi is being sold. Not true. Only those who don't understand this wallet will be fooled. Don't be one of them. They are using Piscan to point out outgoing flows to deceive you," the account clearly stated.

The controversy erupted shortly after Pi Network's long-anticipated appearance at Consensus 2025.

Teaser segments had made many expect a mainnet launch and widespread dApp deployment. Instead, the core team announced Pi Network Ventures—a $100 million ecosystem fund to support developers in the Pi community.

Although this announcement marked a strategic move for the project's long-term development, it disappointed many users and may have contributed to the selloff.

"The community believed they were moving towards a full Mainnet launch with 100 high-quality DApps — but instead, on 05/14, there were no major updates. Only Pi Network Ventures," Dr. Picoin pointed out.

Despite this incident, Pi co-founder, Dr. Nicolas Kokkalis, used the conference to highlight Pi Network's future direction. He shared plans to integrate artificial intelligence and decentralized identification tools for Web3 applications.

Kokkalis also confirmed that the network's central node has been deactivated, paving the way for complete decentralization. Additionally, he introduced the Horizon upgrade for Pi Node operators, an important step towards mainnet readiness.