Pi Network Faces Scrutiny Following Mantra Crash

The shocking collapse of Mantra (OM)—a 90% nosedive in a single day—has sent ripples through the crypto community. As OM dropped from $6.32 to $0.57, erasing $6 billion in value, analysts are now turning their attention toward Pi Network (PI) with renewed concern.

Pseudonymous crypto analyst Dr Altcoin took to X to sound the alarm, urging Pi Network’s developers, the PiCoreTeam (PCT), to strengthen infrastructure and transparency. According to him, if the Pi ecosystem fails to implement preventive safeguards, a similar market unraveling isn’t out of the question.

What Sparked the Concerns?

The Mantra Fallout

Mantra’s plunge—officially attributed to mass liquidations—has raised deeper suspicions. Some believe it was a coordinated dump. The event has been a wake-up call for smaller or early-stage networks like Pi, which are still navigating token unlocks, business verifications, and ecosystem stability.

Delayed KYB Approvals and Developer Friction

One major red flag is the prolonged delay in approving KYB (Know Your Business) applications on the Pi Network. Developers like PiDaoSwap were reportedly forced to launch NFTs on Binance Chain instead of Pi’s native chain—an embarrassing setback that’s now impacting community trust.

This delay suggests not only bottlenecks in developer onboarding but also a lack of faith in the network’s operational maturity.

Token Mechanics and Locking Structures: Still a Mystery

Another common critique is unclear tokenomics. The PI token’s locking mechanisms remain vague, and the lack of clear documentation is frustrating investors and developers alike. Without knowing when and how tokens can be unlocked or moved, many fear the risk of sudden supply inflations or rug-pull events.

Sentiment Turning Sour: What the Community Is Saying

Crypto podcaster Don Ranalli shared a sharp critique on the Pi Network’s value proposition. According to him, many are realizing Pi doesn’t offer anything fundamentally innovative.

“It’s more about hype and less about product,” he said. “The blockchain space is maturing, and fluff alone isn’t enough anymore.”

This mirrors a broader sentiment: while Pi has a large community, its long-term viability is being questioned.

Price Update: PI Faces a Tough Battle at $0.75

As of today, PI is trading around $0.74, just below a major resistance at $0.75. Despite gaining 27% in the past week, it’s still struggling to break past this critical level.

Analyst View:

Moon Jeff, a popular chartist, believes a long-term target of $5 is “inevitable”, provided the project doesn’t implode internally. However, he cautions that the $3 level remains a formidable resistance zone in the medium term.

Technical Breakdown: What the Charts Are Telling Us

1. RSI Near Overbought

• RSI is at 61, inching closer to the overbought territory (above 70).
• Suggests that while bullish momentum is present, a correction could be on the horizon if buying pressure doesn’t sustain.

2. Bollinger Bands Show Consolidation

• Bollinger Bands are narrowing, indicating low volatility and a possible price squeeze.
• The token is currently hovering around the middle band at $0.7365.
  • Upside target: $0.7895 (upper band)
  • Downside risk: $0.6834 (lower band)

3. MACD Hints at Momentum Shift

• The MACD histogram is still in red, signaling that bearish pressure remains.
• However, the MACD and signal lines are converging, a possible early sign of a bullish crossover—if volume picks up.

What Comes Next for Pi Network?

The Bullish Case:

• A break above $0.75 could unlock short-term momentum toward $0.79 and $1.
• News of upcoming integrations (e.g., Chainlink or Ethereum bridges) could drive price discovery.

The Bearish Case:

• Without improved transparency and faster KYB approvals, developer support may wane.
• Token dump fears may resurface if no clear communication emerges from the PiCoreTeam.

What PiCoreTeam Needs to Do Now

To avoid following Mantra’s footsteps, PCT must act quickly and decisively:

• Accelerate KYB processes for developers and ecosystem partners.
• Clarify token-locking schedules and release a transparent roadmap.
• Provide regular community updates, even if there’s no major news—radio silence breeds fear.
• Foster on-chain utility, not just hype or exchange listings.

Final Thoughts: Pi at a Crossroads

With heightened scrutiny after Mantra’s collapse, Pi Network can no longer rely solely on its massive community base. The crypto world has grown wary of overhyped, under-delivering projects. The warning signs are clear—and so is the path forward.

Whether Pi rises from this moment stronger, or falls victim to its own delays and opacity, will depend on the next few moves by its core team.

Would you like a deeper dive into Pi Network’s ecosystem, roadmap, or tokenomics in a follow-up blog? Let me know!