Pi Coin (PI) isn’t doing great in terms of price volatility – having recently faced a harsh 70% decline since May. Amidst this volatility, one wallet has gathered over 331 million Pi coins. This should raise major flags about the centralized control of the cryptocurrency’s supply and governance. This build-up happened at the same time as most other major cryptocurrencies gained, causing Pi Coin to lag behind and become trapped in a consolidation pattern.
The Pi Core Team has so far not responded to the accumulation of exchange, and no exchange has yet taken credit for its involvement. The $34 billion worth of coins funneled into one address has sparked a spirited discussion among the Pi Coin community. This debate is especially driven by the fact the token has severely underperformed its peers since launch.
Whale Activity and Market Impact
The address associated with GAS…ODM withdrew large amounts every day for three months. Through that whole time, it was slowly amassing its stock of Pi Coin. These transactions were multimillion-PI transfers from the exchanges found on major exchanges for their wash trading, such as OKX, Gate.io, and MEXC. With more than 331 million Pi coins mined so far, this has significantly lessened the amount of tokens circulating in the market. This cut the sell pressure and threw some support towards the price.
Pi Coin’s circulating supply reduction did not help its price drop further. During this entire buying spree, it continued to fall anywhere from 30% to 70% from its all-time highs in early May. By the middle of July, the price had firmed up a little, in the $0.44-$0.48 range.
This raises questions about the motivations behind such large-scale accumulation and its potential impact on the future value and stability of Pi Coin. Such a concentration of wealth on one address would afford the holder a great deal of power over Pi Coin’s ecosystem.
Technical Analysis and Price Predictions
According to technical charts, the most important support level of Pi Coin exists at $0.40 while the most significant resistance level is around $0.50-$0.52. If the current whale activity can be maintained with continued buying momentum, we could see a breakout towards $0.60.
Unlike other cryptocurrencies, Pi coins cannot be traded on any centralized exchange. These predictions necessarily rest on a number of assumptions, including global market conditions and the ongoing interest from the market’s “whales” or large, institutional investors.
Most notably, the concentration of Pi Coin in a single wallet makes technical analyses difficult. The potential actions of this one whale could naturally supplant traditional market indicators. For this reason, investors must continue to exercise caution and do extensive research before considering any investment in Pi Coin.
Community Concerns and Transparency
The Pi Core Team has yet to issue any formal statements regarding the buildup. This continued silence is causing a lot of speculation and concern among the Pi Coin community. Users are asking for more transparency around how Pi coins will be distributed. They too deserve answers about what kinds of measures exist to stop market manipulation.
This anonymity makes the wallet owner deeply intriguing to anyone wondering what they might do. It doesn’t just complain about their outsized power to affect the knighthood Pi Coin net. Without understanding the identity of the whale, it is impossible to understand the long-term implications of their holdings.
They must adopt policies to decentralize ownership and make it less likely for the rich and powerful few to concentrate wealth.
