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- Centralization concerns continue to weigh down Pi Network’s price and trust levels.
- Experts call for urgent token management and ecosystem expansion fixes to reverse the bearish trend.
The Pi Network price has experienced a significant downturn in recent weeks. Despite efforts like the launch of Pi Ventures, the slide continues. As the digital coin struggles to regain investor trust, experts say the solution lies in three key areas that need urgent attention.
Ending Centralization Could Restore Confidence
It is worth noting that Pi Network’s price has struggled mainly due to concerns about centralization. Many investors feel the project is still tightly controlled by the core team and the Pi Foundation.
For instance, in our recent report, we covered that Dr. Altcoin accused the Pi Core Team of misleading the community. He said they did this with overhyped announcements that lacked real mainnet progress.
Additionally, unlike other established crypto projects that allow community governance and voting, decisions within the Pi Network remain in the hands of a few individuals. This has raised concerns, especially with thousands of wallets connected to the foundation reportedly holding over $92.7 billion in tokens.
Such central control carries serious risks. One major fear is the possibility of a security breach, which could result in the dumping of Pi Coins on the open market. That alone could send prices plunging even further. It is essential to state that Centralization has also affected Pi’s listing chances.
As we previously highlighted, most respondents in a community poll want Binance to list Pi Coin. However, Binance rejected the coin, and other top exchanges like Coinbase and Upbit are unlikely to list Pi until it becomes more decentralized.
Experts say decentralizing the network with thousands of active nodes worldwide could solve this. Having a credible third-party auditor in place could also boost transparency and rebuild trust among investors.
Token Management and Ecosystem Growth Must Improve
Notably, another issue weighing down the Pi Network price is the constant unlocking of coins. Over the next 12 months, about 1.51 billion coins will be released into circulation, roughly 132.3 million each month.
Today’s value adds up to $1.12 billion worth of tokens, representing 22% of the current market cap. With supply growing and demand low, prices have continued to fall.
Some believe that burning a portion of these unlocked tokens could ease market pressure and increase the value of the remaining ones. Without such action, current holders may continue to see their stake diluted.
CNF reported earlier that while the broader crypto market is in the green, the network’s token, PI, has lost almost 16% of its value in the past week. As of writing, the coin is trading at $0.7444, down by 4.69%.
Pi Network still lacks a strong ecosystem. The team recently launched a $100 million fund to attract app developers, but building valuable apps takes time. Critics also say that focusing mainly on the Pi Browser limits user reach.
A better approach is to make apps available on platforms like the App Store and Google Play, which are where more users can engage. They believe that until these changes are made, the bearish trend in the Pi Network price may continue.
