Unveiling the insider of Pi Network collapse: founder first appeared big dump 50%, three fatal wounds or head towards the abyss

The Pi Network (PI) token recently faced an unprecedented market collapse, with prices falling nearly 50% in just a few hours, leaving many supporters caught off guard. Ironically, this disastrous drop occurred on the same day that the two mysterious founders of the Pi Network made their first public appearance. Despite the founders attending a community event in Seoul in an attempt to boost confidence, the market reaction was completely the opposite, exposing deeper issues behind this controversial project.

####Big Dump Dissection: The Domino Effect Triggered by Leverage Liquidation

(Source: Trading View)

According to the analysis report from Pi Network Update, this crash is not an accidental event, but an inevitable result caused by a series of structural problems. The direct trigger of the crash was the chain liquidation in leveraged futures trading, which caused disastrous consequences in the already fragile order book of the PI Token.

"This is definitely not a sudden collapse." The analysis report points out that "the initial fall may have been triggered by the sale of thousands of Pi by a small exchange, but in an extremely illiquid market environment, this was enough to trigger a chain liquidation of leveraged futures, leading to a series of forced sell-offs."

This chain reaction exposes the fundamental weakness of the Pi Network ecosystem:

· Extremely low liquidity: The order book for PI trading pairs on mainstream exchanges is very thin and cannot absorb any larger sell orders.

· Over-leveraging: Speculators use high-leverage trading extensively, amplifying market risk several times.

· Lack of institutional support: There are no large market makers willing to provide liquidity support during a big dump.

On September 24, the PI token price hovered around $0.2814, having fallen overnight to a low of $0.2628.

####Oversupply: The Sword of Damocles of Billions of Unmigrated Tokens

Another fundamental issue facing the Pi Network is the enormous potential oversupply. It is estimated that there are still billions of PI tokens in an "unmigrated" state, which could enter the circulation market at any time, creating persistent selling pressure.

"Before the system completely eliminates old miners and the billions of untransferred Pi, the long-term trend is downward," Pi Network Update warned. This comment reveals the long-standing structural imbalance in the Pi ecosystem—large amounts of tokens remain locked or untransferred, and this unresolved situation continues to put pressure on market sentiment.

What further worries investors is that Pi Network founder and pioneer Jatin Gupta publicly admitted that the price volatility of the Pi Token far exceeds that of Bitcoin. "Pi will fall along with Bitcoin, but the drop is usually much larger," Gupta admitted, "When Bitcoin corrects, Pi could big dump to $0.18! That's terrifying."

This lack of resilience further reinforces the market's doubts about the long-term value of the Pi Token.

####Founder Makes First Appearance: Why Wasn't the Collapse Averted?

On the same day that this market disaster occurred, the two founders of Pi Network made their first public appearance at a community event held in Seoul. This should have been an important moment to boost confidence, but why did it instead become the backdrop for the price collapse?

Analysts pointed out that although the founder's appearance addressed some doubts about the project's authenticity, it failed to answer the core question that the community is most concerned about:

· Token utility: The actual application scenarios and value proposition of Pi Token remain unclear.

· Ecosystem Development: Lack of a clear roadmap for ecosystem construction and substantial progress.

· Liquidity strategy: Failed to propose concrete solutions to the liquidity shortage issue.

· Handling of unallocated Tokens: The handling plan for billions of unallocated Tokens remains unclear.

More importantly, the founder's appearance failed to resolve the increasingly serious trust crisis within the community. As the critic "Mr. Spock" pointed out: "This is the reason for the failure of Pi Network. This is a community project, but the community does not believe that there are Pi in the exchange. Most people in the Pi community do not buy Pi, which is also why I no longer promote Pi Network as vigorously as I used to."

####Community Split: The 'Real' Pi Controversy

The most critical issue facing Pi Network may be the profound division within the community. On one hand, many early supporters and "Pioneers" insist that the Pi tokens traded on exchanges are not the "real" Pi; on the other hand, investors on the exchanges question the validity of this claim.

This split has led to an absurd situation: as a community-based project, the core community members of Pi Network refuse to participate in public market trading, further exacerbating the liquidity crisis.

"The reason why Pi may fall to zero lies here," Mr. Spock warned, "when the core community of a project does not believe in the authenticity of its publicly traded Token, the project loses its most basic foundation of trust."

####The Future of Pi Network: Three Possible Development Paths

In the face of the current crisis, Pi Network may face three different development paths:

#####1. fall

If the core issues are not addressed, Pi Token may continue to depreciate and eventually lose market attention. The potential inflow of a large number of unmigrated tokens will continue to create selling pressure, while the lack of substantial application scenarios will fail to attract new buyers.

#####2. Stabilize and Rebuild

If the Pi Network team can clarify the token economic model, solve the issue of untransferred tokens, and establish a real application ecosystem, it may stabilize at a low level and gradually rebuild market confidence.

#####3. Complete Transformation

The most radical approach is a complete transformation, which may include redesigning the Token economic model, introducing new application scenarios, and even considering measures such as Token swaps or restructuring.

Regardless of the path chosen, Pi Network faces difficult challenges. The market outlook remains grim until structural issues are addressed. For investors still holding Pi tokens, rationally assessing risks and avoiding emotional decisions will be the best strategy to cope with the current situation.