Pi Network is facing renewed backlash from its community after its native token, PI, plunged over 50% in the past five days.
The sharp decline has raised fresh accusations of a potential rug pull, as users uncover large token transfers linked to project insiders.
12 Million Tokens Transfer Sparks Rug Pull Fears for Pi Network
On May 17, a respected community member known as Dr. Picoin made a serious allegation against the Pi Core Team. He claimed the team offloaded millions of PI tokens during the recent price peak near $1.60.
He cited blockchain data that revealed a 12 million PI transfer and claimed the team manipulated the price while the community focused on project announcements.
“The Core Team sold tens of millions, if not hundreds of millions, of Pi at the peak — all while the community was distracted by announcements and the illusion of progress,” Dr. Picoin alleged.
His claims, though unverified, quickly spread online and fueled panic among holders. The allegations also triggered debates over transparency and trust within the project.
While some users echoed concerns of insider profit-taking, others dismissed the accusations as misleading.
One Pi supporter argued that the transactions were tied to the migration of user balances from testnet to mainnet.
According to the account, the wallet address at the center of the issue is GABT7EMP. It has long been labeled as a distribution wallet used for operational purposes.
“They are saying Pi is being sold. not true. Only those who dont understand this wallet will be mislead. Dont be one of them. They are using Piscan which shows outflow to mislead you,” the account stated.
The controversy emerged shortly after Pi Network’s much-anticipated appearance at Consensus 2025.
Teasers had led many to expect a mainnet launch and widespread dApp rollout. Instead, the core team unveiled Pi Network Ventures—a $100 million ecosystem fund aimed at supporting builders in the Pi community.
Though the announcement marked a strategic move for the project’s long-term growth, it underwhelmed many users and likely contributed to the sell-off.
“The community believed they were heading toward a full Mainnet launch with 100 high-quality DApps — but instead, on May 14th, there was no major update. Just Pi Network Ventures,” Dr. Picoin pointed out.
Despite the fallout, Pi co-founder Dr. Nicolas Kokkalis used the conference to spotlight Pi Network’s future direction. He shared plans to integrate artificial intelligence and decentralized identity tools for Web3 applications.
Kokkalis also confirmed that the network’s central node has been decommissioned, paving the way for full decentralization. Additionally, he introduced the Horizon upgrade for Pi Node operators, a critical step toward mainnet readiness.
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