Pi Network (PI) Faces ‘Pyramid Scheme’ Accusations as Analyst Issues Crucial Warning
Pi Network’s PI has been on a large value decline over the previous a number of months, inflicting many group members to lose endurance and name the challenge a rip-off.
Meanwhile, the bearish situations of the broader crypto market and another vital components sign that the asset might expertise an extra downfall within the close to future.
‘Not a Healthy Correction’
It appears reasonably absurd that PI was buying and selling at round $3 almost a 12 months in the past, given its present valuation. Last week, the token slipped to a brand new all-time low of roughly $0.13, and as of press time, it’s price roughly $0.14, representing a staggering 95% collapse from the historic peak.
According to X person pinetworkmembers, the decline isn’t “a wholesome correction,” however a market pricing of the most important problems with the controversial challenge behind the cryptocurrency:
“That’s not a wholesome correction, that’s the market lastly pricing within the apparent: no functioning mainnet after years of guarantees, no real-world utility past ‘hold the app open’, and an entire lot of cell mining theater.”
They claimed that at the beginning PI was offered as “revolutionary,” however finally ended up showing like “the longest-running pyramid scheme dressed up as Web3 empowerment for hopeful retirees and late-night scrollers.”
They opined that Pi Network customers (identified as Pioneers) ought to admit that the experiment failed and redirect their vitality towards one thing extra productive that may really convey them revenue.
“RIP to the baggage nonetheless being held. Touch some grass, critically,” the X person concluded.
This isn’t the primary time the challenge has develop into the topic of criticism. Earlier this month, Pi Network’s Core Team celebrated the so-called “Moderator Appreciation Day.” The occasion aimed to acknowledge moderators and reward their function in constructing and supporting the group.
The assertion, nevertheless, triggered vital backlash, as many members argued that the challenge ought to give attention to extra urgent points, such as expediting the verification course of and associated duties.
What Lies Ahead?
Several regarding components, together with the upcoming token unlocks, counsel PI’s value might fall additional within the quick time period. Data exhibits that almost 250 million cash will probably be launched over the subsequent 30 days, leading to a median each day unlock of greater than 8.3 million.
February 13 is anticipated to be the report day, when 23.6 million PI will probably be freed up. While the event doesn’t assure a further value collapse, it may be thought of bearish as a result of it will increase the promoting stress.
On the opposite hand, PI’s Relative Strength Index (RSI) alerts {that a} rebound may be on the horizon. The technical evaluation software measures the velocity and magnitude of latest value modifications and helps merchants determine potential reversal factors. It varies from 0 to 100, and ratios under 30 point out that PI has entered oversold territory and could also be due for a resurgence. According to RSI Hunter, the RSI presently stands at round 35.
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