Analysts warn Pi Network about transparency after OM token collapsed by 5.5 billion USD

After the catastrophic collapse of the OM token from Mantra, analysts are calling for the Pi Core Team (PCT) to be more transparent and cautious.

These comments were made after Pi Network transitioned to the complete Open Mainnet phase.

Pi Network is advised to prioritize transparency after mainnet

This warning appears after the price of OM dropped more than 90% in less than an hour, wiping out over 5.5 billion USD in market capitalization.

After this collapse, there is widespread concern in the cryptocurrency industry that similar events could occur in projects that are undergoing critical development stages and unlocking tokens. Among them is Pi Network, a project that has recently transitioned to Open Mainnet.

Dr. Altcoin, a cryptocurrency analyst and advocate for decentralized ethics, connects the OM incident with Pi Network and calls for stricter regulations.

"The OM incident is a wake-up call for the entire cryptocurrency industry, proving that stricter regulations are needed. It is also a great lesson for the Pi Core Team as we transition from Open Network to Open Mainnet," he tweeted.

Some users have defended the Pi Network platform, emphasizing the roadmap focused on utility and avoiding speculative hype. However, Dr. Altcoin still emphasizes concerns about the lack of transparency.

"One thing is clear about PCT, they are not transparent," he added.

However, the large Pi community remains optimistic. The Pi Open Mainnet account, introduced as a pioneer, has posted a rebuttal outlining why Pi might avoid the fate of OM. They emphasize that the slow token release strategy and the absence of major early sale events are the central factors contributing to that confidence.

"A large community ( of more than 35 million pioneers ), unlocking stability, increasing utility (.pi domains, dapps ), and clean records," they wrote.

Indeed, the Pi ecosystem is expanding. The integration with Chainlink, new fiat deposit gateways, and Pi Ads are creating what the team calls a "virtuous cycle" of acceptance and utility, according to the Pi Open Mainnet 2025 account, a senior pioneer.

"These advancements create a virtuous cycle for the Pi Network. Easier fiat deposit gateways bring in more users (the Pi community has nearly 60 million people), Pi Ads promote more applications and utilities, and the integration of Chainlink adds reliability and interoperability. More users → more utilities," it states.

With a community said to be nearly 60 million people, many believe that the project has a strong user-driven foundation, unlike the more centralized dynamics of OM.

Is this enough to prevent a fate similar to OM?

However, not everyone believes that this will be enough. Mahidhar Crypto, a validator for Pi Coin, is calling on users to withdraw Pi coins from centralized exchanges (CEXs) to prevent price manipulation.

"We have seen what happened with OM - how market makers dumped on users... When you send your Pi Coins to CEX, market makers will use bots to create artificial buy/sell walls to manipulate prices or liquidity," they warned.

This aligns with recent concerns about collusion between market makers and CEXs. Mahidhar also urged the Pi Core Team to thoroughly examine the businesses that have verified their KYB and avoid listing Pi derivatives on CEXs, due to the risks of leveraged trading on still-evolving assets.

Adding to the skepticism is the on-chain behavior related to OM. Trading Digits, a technical analysis company, points out that the "Pi Cycle Top" indicator, a pattern that often signals market peaks, has been triggered twice for OM since 2024, the most recent being just two months before it collapsed.

"Coincidence or unavoidable?" the company poses the question.

Will Pi follow the path of discipline, prioritizing utility, or could it fall into similar traps that led to the collapse of OM?

Data from BeInCrypto shows that Pi Network's PI coin is trading at 0.74 USD at the time of writing, down 1.36% in the past 24 hours.

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