Pi Network's native cryptocurrency PI continues to face selling pressure

Pi Network's native cryptocurrency PI continues to face selling pressure as community backlash grows over perceived lack of transparency from the project's leadership team.

Pi Network’s native cryptocurrency, PI, continues to face selling pressure as community backlash grows over a perceived lack of transparency from the project’s leadership team. The token recently slipped below the $0.70 mark amid declining trading volumes and growing skepticism from community members.

The PI token has experienced a 20% price decline over the past seven days. This downward trend comes despite the Pi Core Team’s announcement about record participation in their inaugural PiFest on the Open Network.

According to the team’s announcement, over 125,000 registered sellers participated in the event. This included more than 58,000 active sellers and 1.8 million Pioneers utilizing Map of Pi.

However, community reaction to this news was largely negative. One community member, known as Dr. Altcoin, noted that trading activity in the ecosystem had reached its lowest point since PiFest began.

“The only trade was selling Pi for Cash,” Dr. Altcoin commented, adding that the Pi co-founders “seem out of touch with the realities of the everyday Pi Community.”

Another community member criticized the Pi Core Team’s communication approach. Critics argued that monthly updates were too predictable and insufficient for maintaining an engaged community.

Some members called for a more transparent communication strategy and even suggested new leadership with deeper cryptocurrency expertise.

This communication gap appears to be widening at a critical time for the project. The community’s frustration comes as Pi Network implements a reduction in its base mining rate.

The network’s base mining rate dropped by 1.18% this month to 0.0029030 π per hour. This continues the project’s trend of gradual mining rate reductions.

Some community members believe the declining interest in mining may be connected to Pi’s current low trading value on exchanges.

After reaching a high of nearly $0.62 last month, the cryptocurrency slid further on Monday. By 08:00 ET (12:00 GMT), PI was changing hands at $0.6708, continuing its downward trend from the previous session.

This downturn follows a sharp decrease in trading volumes, which fell 52% on Monday to $148 million. The cryptocurrency is now trading approximately 77% below its all-time high.

If current trends continue, the token is only about 14.9% away from its all-time low of $0.6152, which was recorded on February 20.

Technical analysis shows Pi Network is forming a classic falling wedge pattern. The token is currently testing the lower boundary near $0.687.

Analysts suggest that a confirmed breakout with volume above the $0.71-$0.72 range could signal a bullish move. This could potentially push the price toward resistance levels at $0.75-$0.78.

After a period of consolidation, the cryptocurrency is showing signs of recovery. As the price hovers above the lower boundary of the falling wedge, there is potential for a rebound.

However, if the bears manage to break the support and push the price below $0.6750, further declines toward $0.6400 may follow.

KYC controversies

Adding to Pi Network’s challenges are controversies around its Know Your Customer (KYC) protocols. The project recently announced it would request email addresses to activate two-factor authentication (2FA) in its mobile application.

The developer explained that SMS authentication was no longer suitable due to the global distribution of Pi users and telecommunications limitations in certain countries.

However, this move drew criticism from the crypto community. Many saw it as an unnecessary breach of user privacy in an industry where anonymity is highly valued.

Pi Network is adding email-based two-factor authentication to the overall account management and verification.

This change addresses challenges with current SMS (text message) account verification, improves security, and lays the groundwork for future blockchain and cryptocurrency services that require email verification.

The project’s statement reads:

“Due to the global reach of Pi Network and varying telecommunications infrastructure in different countries, SMS-based two-factor authentication has become less effective and reliable over time, especially in certain regions.”

The project is introducing email-based two-factor authentication to its mobile application to ensure optimal security and user experience despite these technicalities.

This transition will enable efficient two-factor authentication for all members of the Pi Network community worldwide.

The developer explained that users will be able to select their preferred two-factor authentication method. They will also have the option to disable it altogether if desired.

This move comes after the project was already under scrutiny for requiring holders to complete a strict KYC process to migrate their tokens to the public mainnet.

These privacy concerns, combined with allegations from industry figures claiming Pi is a scam, have contributed to downward pressure on the token’s