Pi Network Under Attack: Severe Criticism Questions Crypto Project’s Legitimacy

• Pi Network: Fraud allegations.
• Allegations of network dentralization.
• Lack of IP transparency?

Pi Network (PI) has recently become the center of a firestorm of criticism. CyberCapital founder Justin Bons has launched scathing accusations, labeling Pi Network a “scam” and raising serious concerns about its technology, business model, and tokenomics. The crypto project quickly gained attention from the community for its promise to revolutionize mobile cryptocurrency mining.

“WARNING: PI is a straight up scam! Offering a “MLM” based “mining” scheme on mobile is a scam as it does not contribute to consensus! PI is fully permissioned (centralized) and everything requires KYC, even simple TX’s! PI is an investment scam; it’s that bad,” he wrote in a publication on X.

The expert’s accusations have echoed throughout the cryptocurrency community. The crux of the allegations lies in the controversy that despite its promises, Pi Network remains heavily centralized, with all transactions requiring a Know Your Customer (KYC) procedure. This centralization, according to Bons, contradicts the narrative of a decentralized and open network. Furthermore, the expert criticized the five-year delay in the launch of Pi Network’s mainnet, questioning the veracity of the project’s promises of innovation and decentralization.

“Claiming decentralization while remaining extremely centralized is a huge red flag. Delivering a mainnet five years late with NO innovation is another IP claim to be a revolutionary new decentralized cryptocurrency. Nothing could be further from the truth…” he said.

In a series of posts, Bons alleged that the core technology of the Pi Network project was copied from the Stellar (XLM) network. Furthermore, he criticized Pi Network’s referral program, which has been compared to a multi-level marketing (MLM) scheme, as well as the lack of transparency in token allocation.

“The fact that PI made it into the top 20 is a disgrace to our industry,” he criticized.

In a rapid rise, PI soon positioned itself among the main cryptocurrencies in the market, however, after facing falls drastic, the asset fell many positions and is now in 27th place in the overall ranking, with a market capitalization of US$ 5.9 billion.

At the time of publication, the price of PI was quoted at $0,8738 with a drop of 25.6% in the last 24 hours.