Why Are People Calling Pi Coin (Pi Network) a Scam in Crypto? How Pi Price in 2025?

Pi Network has recently been surrounded by allegations and controversy, with some calling it a scam. Launched in 2019 as a mobile-first crypto mining platform, Pi quickly gained a massive following, boasting over 60 million members. 

The project promised to offer a way for individuals to mine blockchain cryptocurrency from their mobile phones with little to no effort. However, as the project gained traction, its legitimacy has come under scrutiny. Recently, a series of events has raised concerns, and some are now questioning whether Pi is really a legitimate project or just another potential scam.

In this article, we’ll take a deep dive into the allegations, the events surrounding the Pi price crash, and what it means for backers. Let’s explore the Pi saga, examining both the arguments from supporters and critics.

Read also : Pi Network Coin News: Insider Info, Sell-Off Rumors, and What’s Next

What is Pi? Understanding the Basics of Pi Network Not Only Mining

Pi, also known as Pi Network, started as a project aimed at making crypto accessible to everyone. Unlike traditional cryptocurrencies like Bitcoin, which require specialized hardware and large amounts of electricity, Pi promised to allow members to mine the symbol using just their mobile phones to send in exchange.

The project’s early marketing was based on the idea that people could earn Pi by simply running the app on their phones, and the network would grow organically as more members joined. Over time, Pi ecosystem gained popularity, and its user base exploded. By 2025, Pi had over 60 million members worldwide.

However, as the network grew, critics started to raise concerns. The lack of openness, the reliance on a multi-level referral system, and the absence of any working decentralized applications (dApps) raised red flags for many in the crypto community. Despite these concerns, the project launched its mainnet in early 2025, and Pi experienced a massive price surge in a short period.

Allegations of a Scam: What Happened with the 12 Million Tokens?

The controversy surrounding Pi really intensified when Atlas, a well-known crypto investigator, came forward with allegations of a massive insider “pump and dump.” According to Atlas, a wallet linked to the Pi Core Team (Nicolas kokkalis) dumped over 12 million  tokens, which caused the price of the asset to crash by more than 50% in trend.

Here’s a breakdown update of the timeline of events:

• May 1, 2025: The price of Pi was $0.6135.
• May 12, 2025: The price surged to $1.6704, marking a 113% increase.
• May 14, 2025: The price dropped sharply by 40.27%, continuing to fall.
• May 20, 2025: Pi was trading at $0.7364, marking a 32.3% loss in just seven days.

According to Atlas, the timing of this price crash aligns with the transfer of the 12 million. He believes that this behavior fits the pattern of a “pump and dump,” which is often orchestrated by insiders to artificially inflate prices before selling off the assets to unsuspecting backers.

The Pi Network’s Defense: Testnet Migration or Scam?

While Atlas and other critics have been vocal about the 12 million Pi dump, the Pi community has a different perspective. They argue that the transfer of currency was part of a routine testnet-to-mainnet migration, not an insider sell-off. 

According to the community, the transfer was necessary to complete the transition to the mainnet, which would allow Pi to become a fully functioning crypto blockchain.

Despite these claims, the timing and lack of clear communication surrounding the transfer of the tokens have left many stakeholders feeling uneasy. Atlas has called out the Pi Network for not providing adequate transparency about the move, leading to further speculation about the project’s intentions.

For many, the argument about a testnet migration seems weak, especially considering the significant price volatility and the lack of any substantial adoption or utility for the coin. Bakers are now demanding clarity from the Pi Core Team to understand the real reasons behind the token transfer.

What’s Next for Pi Coin? Can It Recover?

The current situation surrounding Pi has created a lot of uncertainty. With the price crashing and allegations of insider manipulation, the future of Pi looks murky at best. However, the project still has a strong user base, and many bakers are hoping that it can recover.

The Pi Network needs to address the allegations head-on and provide transparency regarding the 12 million token transfer. If the project can demonstrate that it’s committed to its original vision and provide the necessary clarity, it may regain the trust of the crypto community.

However, for now, Pi faces significant skepticism. The lack of utility, transparency issues, and concerns over market manipulation make it a risky investment for those considering entering the space. Whether or not Pi can overcome these challenges remains to be seen, but stakeholders should proceed with caution.

Read also : Pi Network (PI) Price Prediction for 2025-2030 - Pi Network Mainnet Launch

Conclusion: Should You Trust Pi Coin?

In conclusion, the allegations surrounding Pi have caused significant concern among investors. While the project initially offered a promising way for individuals to mine cryptocurrency using their phones, the recent price crashes and insider allegations have raised questions about its legitimacy.

If you're considering investing in Pi, it's crucial to approach it with caution. While the project has a large user base, it still lacks transparency and utility, which makes it highly speculative at this stage. Be sure to conduct thorough research and carefully weigh the risks before deciding whether Pi is worth the investment.

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FAQ

What is Pi Coin (Pi Network)?

Pi Coin, or Pi Network, is a cryptocurrency that allows users to mine the coin using their mobile phones. It gained popularity quickly but has faced allegations of insider manipulation.

Why is Pi Coin called a scam?

Pi Coin has faced accusations of being a scam due to a sudden price drop caused by a significant number of tokens being dumped by insiders, leading to market manipulation concerns.

Can Pi Coin recover from this controversy?

Pi Coin's future depends on whether the Pi Core Team can address the allegations and provide transparency about the token movement. If they do, the project could recover.