Will Pi Coin Crash Like LUNA? These Indicators Think So

Could Pi Coin be heading down a path similar to Terra Luna’s historic collapse? A recent warning from crypto analyst Szymanski has put the spotlight on potential risks hidden within Pi Network’s structure. 

From centralization concerns to lack of transparency, several red flags suggest that the optimism surrounding Pi Coin may be premature—and possibly dangerous.

A Centralized Supply: The 89% Problem

One of the most alarming revelations is how much control the Pi Network’s core team holds over the total supply of Pi Coin. According to Szymanski, out of the 100 billion Pi tokens that are planned, only 11 billion are in circulation. 

Of those, just 7.1 billion are actively circulating among users, while a massive 89 billion are still in the hands of the Pi Core Team.

This means that nearly 89% of all Pi tokens are under the control of a single entity. In the world of cryptocurrencies, such centralization is widely regarded as risky. 

If the team decided to sell even a fraction of these tokens, it could overwhelm the market and trigger a price collapse—similar to what happened with Terra Luna, where a massive token supply diluted value overnight.

Szymanski warns that even if the team has no intention to sell now, the concentration of tokens makes the entire system vulnerable. Internal disputes, a hack, or poor decision-making could expose investors to severe losses.

Read also: Pi Network Update: Will Pi Coin Recover After the Recent Crash?

Structural Issues: No Mining, No Audits, No Major Exchange Support

Pi Network also faces criticism for its operational structure. Unlike Bitcoin or Ethereum, Pi Coin does not rely on a decentralized mining system. 

Instead, all tokens are pre-minted and stored in wallets controlled by the development team. While this approach allows for a user-friendly experience, it sacrifices transparency and security.

Another major concern is the lack of independent audits. To date, Pi Network has not undergone any third-party security or financial review. This absence makes it difficult for investors to verify the legitimacy of the project or assess how funds and tokens are being managed.

Additionally, major exchanges such as Binance and Coinbase have yet to list PI. Their decision to stay away may reflect concerns over the project’s governance model and the risk of market manipulation due to the large centralized holdings.

Can Pi Network Change Course?

Despite the criticism, analysts believe that Pi Network still has a chance to prove its legitimacy, if it acts decisively. 

Transparency could be a turning point. Publishing a clear and verifiable roadmap, subjecting the project to independent audits, and gradually decentralizing control over token supply are all steps that could improve confidence.

Szymanski recommends that the project open itself to external oversight and share more details about how it plans to protect users and grow responsibly. Without these changes, he considers Pi Coin one of the riskiest assets in the crypto space today.

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

Final Thoughts

The future of Pi Coin hinges on the decisions its core team makes in the coming months. Will they respond to growing concerns and open the project to independent review? Or will they continue to operate behind closed doors, risking a repeat of past crypto failures?

As more users begin to ask these questions, Pi Network is facing a critical moment. Whether it turns into a long-term success or follows the fate of LUNA depends not on hype—but on transparency, trust, and structural reform.

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FAQ

Q: Is Pi worth real money? 

A: Yes, Pi has a live price and a market cap, indicating it has real-world value, though its price fluctuates.

Q: Can I sell my Pi? 

A: Yes, once Pi is listed on an exchange, you can sell it using various order types and withdraw the funds as regular money (fiat), stablecoins, or trade it for other cryptocurrencies.

Q: Can PI coin make me rich? 

A: No, making a lot of money from Pi is described as extremely difficult, and expecting a life-changing windfall from it is considered unrealistic.

Q: Can you convert pi coin to cash? 

A: You cannot directly convert Pi to cash within the Pi Network itself. To do so, you would first need to transfer your Pi to a centralized exchange.