"Pi Coin (PI), Core Team Holds 82% of Total Supply... Centralization Concerns Spreading"
Summary
- "It was reported that 82% of Pi Coin (PI)'s total supply being controlled by the core team is increasing centralization concerns."
- "The concentration of supply that contradicts Pi Network's claims of decentralization is likely to cause security risks for investors."
- "The Pi Network, which currently operates only 43 nodes and 3 global validators, needs to be concerned about security vulnerabilities."
Controversy over centralization concerns of Pi Coin (PI) is heating up.
On the 14th, cryptocurrency specialized media WatcherGuru reported, "According to recently released data, the core team currently directly controls about 82.8 billion PI coins," adding that "this fundamentally shakes the concept of 'decentralized blockchain' that the Pi Network has been claiming."
Pi Coin's total supply is limited to 100 billion coins. However, according to the media, 82.8 billion of these are reportedly concentrated in several wallets managed by the core team.
The media analyzed, "This extreme concentration of supply clearly contradicts Pi Network's claims of decentralization," and "this is likely to cause security risks for many investors."
It added, "Pi Network currently operates only 43 nodes, and there are only 3 global active validators," and "such a small number of validators for a project of this scale is unusual and likely to lead to security vulnerabilities."
Meanwhile, in blockchain, a node refers to a machine that can communicate directly with the blockchain network.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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