Pi Network After Mantra's Crash: Transparency Concerns

Pi Network Faces Scrutiny After Mantra DAO's OM Token Crash

The catastrophic collapse of Mantra DAO's OM token, losing over $5.5 billion in market capitalization in under an hour, has sent shockwaves through the crypto industry. Analysts are now urging Pi Network, recently transitioned to its Open Mainnet phase, to prioritize transparency to avoid a similar fate.

Dr. Altcoin, a crypto analyst, directly linked the OM incident to Pi Network, advocating for stricter industry regulations and increased transparency from the Pi Core Team (PCT).

"The OM incident is a wake-up call. It serves as a huge lesson for the Pi Core Team as we transition to the Open Mainnet."

While some Pi Network supporters highlighted its utility-focused roadmap and lack of speculative hype, Dr. Altcoin emphasized ongoing concerns about the PCT's transparency. Others, like the account Pi Open Mainnet, countered by citing Pi's slow token release and the absence of large early sell-offs as mitigating factors.

"Massive community (35M+ pioneers), steady unlocks, growing utility (.pi domains, dapps), and a clean track record."

Pi Network's recent developments, including Chainlink integration, new fiat on-ramps, and Pi Ads, are presented by the team as creating a positive feedback loop of adoption and utility.

"These advancements form a virtuous cycle. Easier fiat ramps bring in more users, Pi Ads drive more apps & utility, and Chainlink integration adds trust and interoperability."

Can Pi Network Avoid a Similar Fate?

Despite a large community (reportedly nearing 60 million), concerns remain. Mahidhar Crypto, a Pi Coin validator, urged users to withdraw Pi coins from centralized exchanges (CEXs) to mitigate the risk of price manipulation, highlighting potential collusion between market makers and CEXs.

"We have seen what happened to OM—how market makers dumped on users...When you deposit your Pi Coins on CEX, Market makers will use bots to manipulate prices."

Mahidhar also called for the PCT to carefully vet businesses and avoid listing Pi derivatives on CEXs due to the risks associated with leveraged trading on newer assets. Further fueling skepticism, Trading Digits noted that the "Pi Cycle Top" indicator, which often precedes market peaks, triggered twice for OM before its collapse.

"Coincidence or bound to happen?"

At the time of writing, Pi Network's PI coin was trading at $0.74.

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