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Pi Network has already lost more than $18 billion in half a year, which shows it is among the fastest declines of ascending cryptocurrencies in 2025. The project that had been estimated to be over $20 billion is no longer over a billion worth of what it was in the market when it was first estimated. This extreme reduction has raised eyebrows about the transparency and sustainability of the project.
Community analyst Mr. Spock Ape, who is a prominent analyst, spoke about the collapse, saying that it was mostly a rug pull, whereby the confidence of the investors was lost. In spite of the current decline, there are still thousands of Pioneers who mine Pi Coins, still clinging to the old-established Global Consensus Value (GCV) of one Pi being equal to $314,159. This value, however, has not been realized in any form of official or liquid trading market and causing a form of doubt about its genuineness.
The leadership of the project is also questioned. Past executive McPhilip accused the Pi core team of misusing about $20 million of project funds. Apparently, court filings exhibited conflicts between co-founders Dr. Nicolas Kokkalis and Chengdiao Fan, and according to insiders, there was a toxic work environment. This has been re-emerging lately with investors asking their financial institutions to be more responsible.
Although Pi Network is continuously updated, the development of the system has not strengthened its position in the market. The team decreased the base mining rate to $0.0027405 - $0.127 per hour in September, which is a 1.23% monthly decrease. Consequently, users have more than 15 days to mine one Pi Coin without bonuses. The shift was also meant to decrease the supply of the token, but failed to halt the further decline of the token.
Pi Network was another platform that implemented new features, such as a DEX and AMM, on its testnet to model decentralized finance activity. Additionally, the network was upgraded to the testnet version 20, which enhanced the efficiency and scalability of the blockchain in anticipation of the mainnet launch. Supporters hailed these as great milestones, but they have yet to earn new investor confidence.
The project also introduced the Fast Track KYC system to accelerate user verification. Before, miners were required to work 30 mining shifts before they could apply. The new system, based on AI, enables the possibility of verifying transactions sooner and provides faster access to wallets, with the trend being an attempt to enhance user engagement.
The sharp drop has put the governance system of Pi Network under closer examination. Analysts observe that the centralized nature of the project provides the developers with complete control of the issuance of tokens, which reduces transparency. This hierarchy contrasts with other significant cryptocurrencies that are supported by open-source and auditable smart contracts.
Analysts caution that the recovery of Pi Network might not be guaranteed without a third-party listing, an authenticated audit, and independent control. The $18 billion loss serves as a valuable lesson in the risks associated with projects that lack accountability.
As Pi Network struggles to regain investor confidence, the broader crypto community is now monitoring whether its next mainnet release and ecosystem expansion will mark the first step towards rebuilding trust, or whether the issues surrounding the project could indicate some structural shortcomings.
