Pi Network Under Fire: Analysts Warn It Could Crash Like Terra Luna

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Is history repeating itself in crypto? New warnings suggest Pi Network may follow the same path as Terra Luna’s catastrophic collapse.

The Pi Network, once hailed as the next big thing in mobile mining, is now facing intense scrutiny following allegations of centralization, insider control, and opaque operations. A recent report from Coinpedia has ignited controversy after crypto analysts compared the project’s structure to the now-defunct Terra Luna ecosystem, a comparison that has shaken confidence across its 60M+ user base.

“When 89% of a token supply remains in the hands of a core team, it’s not decentralization, it’s a recipe for disaster,” said one analyst during a live crypto panel.

According to the report, out of a planned 100 billion Pi tokens, a staggering 89 billion are still controlled by the core team, while only 7.1 billion are currently circulating. This centralization raises red flags about potential price manipulation or a sudden mass sell-off, a concern eerily reminiscent of Terra’s hyperinflationary collapse in 2022.

A Terra Luna-Type Collapse? Analyst Cites Troubling Parallels

The comparison to Terra Luna isn’t just clickbait, it’s rooted in economic parallels. Luna’s downfall was catalyzed by a liquidity crisis and an unchecked release of tokens into the market. With Pi’s token supply still highly concentrated and the project lacking full exchange support or transparent tokenomics, fears are mounting.

Terra Luna collapse

Several experts argue that if Pi Network ever opens global trading and the dev team begins unlocking tokens en masse, a severe price crash could follow.

Pi Network Tries to Save Face With Decentralization Announcements

In response to mounting criticism, Pi Network announced two major steps to regain trust:

Shutdown of its central node, a move intended to transfer control to the community.
The release of its source code is a transparency gesture meant to counter accusations of centralization.

The timing of this announcement, which coincides with the Consensus 2025 crypto event, suggests Pi Network may be attempting to reset its image ahead of potential listings or public roadmaps.

“We are committed to decentralization,” said a Pi core developer during a community call. “The next chapter of Pi is fully open-source and community-driven.”

However, critics argue these steps are reactive rather than proactive and still lack the infrastructure of a public mainnet or reliable wallet interoperability.

Privacy Concerns and KYC Controversy Deepen the Debate

Beyond tokenomics, Pi Network is also under fire for its handling of user data. The platform reportedly integrated ChatGPT-based AI tools into its KYC (Know Your Customer) process, a feature rolled out with little explanation and no external auditing.

Pi Network crash

This has alarmed privacy advocates, especially since millions of users submitted personal identity documents through the app. Without regulatory oversight or verifiable security practices, Pi’s handling of this data could be a major legal liability.

Are Pi’s 60 Million Users Active? New Data Says No

While Pi Network proudly touts a user base of over 60 million, a closer look suggests user engagement is far lower than advertised. A Grafa report estimates that less than 10% of users regularly interact with the app. Many users have reportedly stopped mining or engaging after realizing there’s still no open trading market for Pi tokens.

This raises the question: Does hype inflate Pi Network, or does it still hold real potential?

What’s Next: Consensus 2025 and the Fight for Legitimacy

All eyes are now on Consensus 2025, where Pi Network is expected to reveal critical updates about its roadmap, decentralization plans, and possibly a listing timeline.

The project’s future now hinges on its ability to rebuild trust, decentralize control, and launch a transparent trading system, without repeating the same missteps that led to Terra Luna’s implosion.

Until then, skepticism remains high.

Pi Network Price Outlook

Although Pi Network’s price isn’t publicly traded on major exchanges, OTC (over-the-counter) markets and community forums have reported valuations between $20–$40 per token in P2P environments. However, these values are highly speculative and unverifiable due to the network’s lack of a public mainnet.

Metric	Value
Total Pi Token Supply	100 Billion
Circulating Supply	7.1 Billion
Core Team Holdings	89 Billion (Est.)
Estimated OTC Price Range	$20–$40 (Unverified)
Active Users (Est.)	<10% of 60 Million base

Conclusion: Hope or Hype?

Pi Network is at a crossroads. The project’s future credibility will depend on whether it can shed its centralized roots, open its ecosystem, and deliver on years of promises. For now, the comparisons to Terra Luna aren’t just media spin; they’re serious warnings.