Analysts warn Pi Network about transparency after OM Token collapsed by $5.5 billion

After the catastrophic crash of Mantra's OM token, analysts urged the Pi Core (PCT) Team to be more transparent and cautious. These comments come after the recent transition of Pi Network to the complete Open Mainnet phase. The Pi Network is advised to prioritize transparency after Mainnet. The warning comes after the price of OM dropped more than 90% in less than an hour, causing the market capitalization to evaporate by over 5.5 billion dollars.

Following this incident, there is widespread fear in the crypto industry about similar events occurring in projects that are going through important stages of token development and unlocking. Among such projects is Pi Network, which recently moved to the Open Mainnet. Dr. Altcoin, a cryptocurrency analyst and advocate for decentralized ethics, links the OM incident to Pi Network and calls for tighter regulation. "The OM incident is a wake-up call for the entire cryptocurrency industry, evidence that stricter regulations are urgently needed. It is also a major lesson for the Pi Core Team as we transition from the Open Network to the main Open Network," he tweeted. Some users defended Pi Network's fundamentals, emphasizing the utility-focused roadmap and avoiding speculative hype. However, Dr Altcoin further highlighted concerns about the lack of transparency. He added: "One thing that is clear about PCT is that they are not transparent." However, the Pi community in general remains optimistic. The Pi Open Mainnet account, introduced as a pioneer, posted a rebuttal outlining why Pi could avoid the fate of OM. The article emphasizes that Pi's slow token release strategy and the absence of major early sale events are key factors for that confidence. "A large community of ( over 35 million pioneers ), unlocking stability, increasing utility ( the .pi domain, dapp ) and clean achievements," they wrote. Indeed, the Pi ecosystem is expanding. The integration with Chainlink, new fiat on-ramps, and Pi Ads is creating what the team calls a "healthy feedback loop" of adoption and utility, according to Pi Open Mainnet 2025, a senior pioneer account. "These advancements create a healthy cycle for Pi Network. Easier fiat on-ramps bring more users, the Pi community now has ~60 million strong, Pi Ads promote more applications and utilities, and the integration of Chainlink adds further trust and interoperability. More users → more utilities," it states. With a community believed to be approaching 60 million people, many believe that the project has a solid foundation driven by users, unlike the more centralized dynamics of OM. Will this be enough to prevent a fate similar to OM? However, not everyone believes that this is enough. Mahidhar Crypto, a Pi Coin validator, has urged users to withdraw Pi Coin from centralized exchanges (CEX) to prevent price manipulation. "We have seen what happened with OM—how market makers are undercutting users... When you send your Pi Coin on 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 CEX. Mahidhar also urged the Pi Core Team to thoroughly review businesses that have been KYB verified and to avoid listing Pi derivative products on CEX, citing the risks of leveraged trading for assets that are still maturing. The increasing skepticism is related to on-chain behavior concerning 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 occurrence just two months before the collapse. "Is this a coincidence or is it definitely going to happen?" the company asked. Will Pi follow a disciplined path that values utility, or could it fall into a similar trap that led to the collapse of OM?