The price of Pi Network (PI) continued its dramatic downward spiral on Saturday, falling to $0.7040 — a staggering 57% drop from its weekly high of $1.6673. This steep decline occurred in the wake of growing concerns about the network's centralization and upcoming token unlocks. The resulting market panic triggered a $6 billion wipeout in Pi’s market capitalization, slashing it from $11 billion to just $5 billion.

Unlike decentralized cryptocurrencies like Bitcoin and proof-of-stake tokens such as Cardano and Avalanche, Pi Network has a fundamentally different structure. All 100 billion Pi coins were pre-mined and are currently stored in wallets fully controlled by the mysterious Pi Foundation. CoinMarketCap data confirms that only 7.15 billion tokens are in circulation, leaving 92 billion coins under central control—sparking widespread criticism regarding transparency and trust.

One of the most pressing issues is the opaque nature of the Pi Foundation itself. The identities of its members have not been disclosed, and the broader community has little to no say in governance. This lack of transparency increases the risk of internal breaches or malicious actors dumping large volumes of tokens on the market—an event that could devastate already-fragile investor confidence.

Furthermore, Pi’s tokenomics present additional long-term concerns. Over the next 12 months, 1.48 billion tokens are expected to be unlocked, with billions more set for release in subsequent years. These continual unlocks put significant downward pressure on the token’s price and pose inflationary risks that further deter potential investors and large exchanges like Binance and Coinbase from listing Pi.

From a technical analysis perspective, the Pi coin has broken below key support levels, including $0.7760, and is now trading under both the 25-period moving average and the 50 mark on the Relative Strength Index (RSI). These indicators suggest bearish momentum will likely persist. If the downtrend continues, Pi could test new support around $0.60, and if that level fails, a plunge toward $0.40 is increasingly probable.

As concerns about centralization and financial security mount, Pi Network’s credibility hangs in the balance. Until the team behind Pi becomes more transparent and addresses the foundational risks, investor skepticism and downward price pressure are likely to persist.