Pi Network’s native token (PI) has plunged by over 32% in the last seven days, falling below the psychologically significant $1 mark. Despite boasting over 60 million global users and pioneering mobile crypto mining, the project now faces intense scrutiny over token distribution and governance, sparking widespread sell-offs.

Why Did Pi Coin Crash Below $1?

• Binance’s unexpected delay in listing Pi after a community vote triggered initial frustration and market uncertainty.
• A tight and rapid token unlock schedule created panic among retail holders, leading to a wave of selling by so-called “paper hands”—investors who sell quickly amid price dips.
• At press time, Pi Coin is trading near $0.94, after briefly dipping to $0.85 support on March 21.

Centralization Concerns Around Pi Network’s Super Nodes

• Much of the recent backlash stems from fears of centralization, particularly regarding the distribution of Super Node control.
• During Pi Network’s testnet phase, only three Super Nodes existed, raising alarm about network decentralization.
• Although the number of Super Nodes has increased to 41, concerns remain over:
  • The lack of transparency in node selection.
  • Opaque validation requirements.
  • The potential exclusion of mobile miners from governance roles due to hardware limitations.

Mobile Mining Users Seek More Inclusion

• Pi’s massive user base was built on the promise of accessible mining via smartphones—without expensive rigs.
• Now, fears that decision-making will fall into the hands of a few high-resource operators have created distrust in the project’s decentralization narrative.
• The community has called for a clear participant reward system and greater governance access for mobile users, known as Pioneers.

Developer Community Response: PiDAO Swap and .Pi Domains

To counter centralization fears and price manipulation:

• Developers have begun building PiDAO Swap, a decentralized platform to enable fair token exchange.
• Users are also registering personal .Pi domains, adding a layer of identity and functionality to the ecosystem.

Outlook: Can Pi Coin Reclaim the $1 Peg?

• $0.85 remains a critical support level, but reclaiming $1 may prove difficult unless:
  • Token unlocks are better managed.
  • Governance concerns are addressed.
  • Community trust is restored.
• Without meaningful reform, additional sell pressure could emerge, especially if mobile miners feel increasingly disenfranchised.

Hidden Insight

Pi Network’s challenges echo larger DeFi and L1 governance dilemmas: as networks grow, early accessibility must be balanced with infrastructure scaling. If Pi fails to institutionalize transparency, it may lose its pioneering user base to more community-governed platforms.