In light of the recent Mantra (OM) incident, where the token price plummeted from $6.32 to $0.57 in a single day, community members are calling on the Pi Network to learn valuable lessons. Cryptocurrency analyst Dr. Altcoin is urging the PiCoreTeam (PCT) to establish guardrails to prevent a similar event from occurring within the Pi Network. The incident has raised concerns of a rug pull, as market losses reached $6 billion with $400 million lost by traders who bought OM just three days before the crash.
Dr. Altcoin believes that the Pi Network needs to ramp up the development of ecosystem guardrails before the transition to open mainnet to avoid a repeat of such incidents. The lack of transparency within the PCT has caused concern among investors, with some questioning the locking and burning mechanism for Pi Coins and delays in KYB approvals for projects. The skepticism surrounding the Pi Network has led to a decrease in faith in the PCT among community members.
Despite the recent rise in the price of Pi Coin by nearly 30% over the last seven days to $0.7404, concerns about a potential drop to $0.3 still linger. Pi miners are currently capitulating, further casting doubt on the direction of the Pi Coin price. Dr. Altcoin emphasizes the importance of transparency and diligence in ensuring the stability and trustworthiness of the Pi Network as it transitions to open mainnet.
The OM incident is seen as a wake-up call for the entire crypto industry, highlighting the need for stricter regulations to prevent such steep price drops. Dr. Altcoin believes that the Pi Network must take this lesson to heart as it moves towards open mainnet to avoid potential pitfalls. The PCT must address transparency issues and establish robust infrastructure to instill confidence and prevent market manipulation within the Pi Network.
While some community members may defend the PCT and argue against allegations of a rug pull, there is a growing dissent within the ecosystem. The lack of transparency surrounding key aspects of the Pi Network’s operations has eroded trust in the PCT, leading to concerns about the future of the project. Dr. Altcoin stresses the importance of addressing these transparency issues and restoring faith in the Pi Network to ensure its success in the long run.
In conclusion, the Pi Network must heed the lessons learned from the Mantra incident and take proactive steps to prevent similar occurrences on its platform. Transparency, diligence, and robust infrastructure are necessary to build and maintain trust among investors and community members. As the Pi Network transitions to open mainnet, it is crucial for the PCT to address concerns, improve transparency, and establish safeguards to protect users from potential risks in the volatile cryptocurrency market.
