Pi Coin Tanks As Pi Network Allegedly Misused $20 Million Funding

The Pi Network leadership team is facing some tough questions over the utility of Pi coin and other developments, as the native cryptocurrency slips out of the top 50 crypto list. With a 22% correction over the past week, the altcoin is now finding a base at $0.25. Experts are now questioning the silence of the Pi Core team behind the delays in mainnet launch, the misuse of $20 million in funding, and much more.

Pi Network Team Allegedly Misused $20 Million in Funds

The Pi Network is under renewed scrutiny following allegations from former executive McPhilip, who claims he was unfairly removed from the project while its financial resources were mishandled. Court filings, dating back to 2020, reveal internal disputes between co-founders Dr. Nicolas Kokkalis and Chengdiao Fan, allegedly creating a toxic workplace. Fan will reportedly be speaking at the TOKEN2049 event this week, happening on October 1-2.

McPhilip further alleges that the co-founders attempted to dilute his ownership by issuing new shares at $0.00005 each. This happened despite earlier fundraising in 2019–2020, valuing the company at $20 million. He also claims his access to company servers, financial accounts, and operational tools was revoked after internal conflicts escalated.

The Pi community members have started questioning developers over their failure to create a Pi Network ecosystem. This has eventually left the Pi coin having no utility in the first place. Popular Pi Community member Mr. Spock wrote:

“The Core Team received $20 million in funding in 2019. They could have built the entire ecosystem with 100 apps back in 2020 with all that funding, yet they hid it from us and investors. The whole time, they had the funding to build Pi Network the right way, but there was conflict over control and personal issues from the founders”.

These disputes explain the Pi Core Team’s lack of communication with its large user base. It has further raised questions about transparency, governance, and whether leadership struggles have undermined the project’s “community-first” vision. As the Core team remains silent on key issues, the sentiment within the Pi Community is waning despite recent developments of getting Protocol v23 on testnet.

Pi Coin Slips Out of Top 50 Crypto List

Last week, the Pi coin price tanked by 25% slipping all the way to the support levels at $0.25. Amid this downfall, the altcoin has slipped out of the list of top 50 crypto assets, despite ongoing rumors of Binance listing.

Earlier this year, Pi coin grabbed a spot among the top 15 crypto assets, however, continuous delays in mainnet launch and failure to come up with a concrete plan by the Pi core team have led to huge sell-offs. Furthermore, the Core team has continued to maintain the anomaly with respect to the Global Consensus Value (GCV), which pegs each Pi coin at $314,159, much above the current trading price of $0.26. This lack of clarity has led supporters to lose trust in the project.