Pi Coin Drops 20% Amid Community Frustration, KYC Concerns

The Pi Network's native token, Pi Coin, has experienced a significant decline, falling below the $0.70 mark. This drop represents a 20% decrease over the past week, reflecting growing frustration within the Pi Network community. The community's dissatisfaction stems from the Core Team's perceived lack of transparent communication and recent controversial decisions, such as increased Know Your Customer (KYC) requirements, which have raised privacy concerns among users.

The Pi Core Team recently announced record participation in the inaugural PiFest on the Open Network, with over 125,000 registered sellers and 1.8 million Pioneers using Map of Pi. However, this positive news has not been enough to stem the price decline or improve community sentiment. Community members have expressed dissatisfaction with the Core Team’s communication approach, arguing that monthly updates are predictable and insufficient for maintaining an engaged community. One member, Dr. Altcoin, noted that trading activity in the Pi ecosystem has reached its lowest point since PiFest began, with most transactions involving selling Pi for cash.

Technical analysis indicates that Pi is currently forming a falling wedge pattern, testing the lower boundary near $0.687. Technical analysts suggest that a confirmed breakout with volume above the $0.71–$0.72 range could signal a bullish move, potentially pushing the price toward $0.75–$0.78, where key resistance levels exist. The 5-minute chart displays fundamental support areas between $0.7100 and $0.7150. The Relative Strength Index (RSI) shows a neutral value of 50.46, indicating indecisive market conditions. Previous market upward movements occurred when the RSI value fell below 30 during oversold conditions. Resistance typically appears when RSI surpasses 70, entering overbought territory.

The Pi Network has made several controversial moves recently, including strengthening its Know Your Customer (KYC) protocols. The project will now request an email address to activate the two-factor authentication feature of its mobile application, moving away from SMS authentication. This change addresses challenges with current SMS (text message) account verification, improves security, and lays the groundwork for future developments. However, the crypto community has criticized this decision as an unnecessary breach of users’ privacy in an industry where anonymity is highly valued.

Pi was already under scrutiny for its unilateral decision to demand that Pi holders go through a strict KYC process to migrate their tokens to the public mainnet. These decisions, along with allegations from prominent figures in the crypto industry who claim that Pi is a scam, have contributed to depressing its price. The Pi Network’s base mining rate has also dropped by 1.18% this month, now standing at 0.0029030 π per hour. This adjustment continues the network’s trend of gradual mining rate reductions. Some community members speculate that the declining interest in mining may be linked to Pi’s current low trading value on exchanges.

Despite talks of the Pi Network listing on top crypto exchanges, these have not materialized so far. The cryptocurrency is currently just 14.9% away from its all-time low of $0.6152 from February 20. If the current support level of $0.6800 fails to hold, nothing would prevent Pi from collapsing to all-time lows. Market experts suggest monitoring both RSI and MACD indicators as they provide clear signals for investors. Crossing $0.7300 could propel the price to $0.7400-$0.7500 resistance with enough trading volume to potentially reach $0.7550. However, if sellers push the price beneath $0.7100, it could lead to further declines toward $0.7000 and potentially to $0.6900.

The Pi Network Mainnet Launch has been highly anticipated, with many expecting a price rally. However, market changes have caused concern among investors after Pi Coin fell by 68% during its latest dip. The future movement of Pi Coin remains uncertain, and investors must track team statements from Pi Network as well as market conditions.