Key Insights
The Pi Network is expecting a launch of the mainnet on 20 February 2025.
The network was first launched in 2019, almost 6 years ago.
Many users who were tired of the Pi Network existing in a pre-launch mode are calling it a scam.
However, some analysts are still optimistic about its future.
Several users on X.com have started calling the Pi Network a scam because of its delay in launching a mainnet (it took almost 6 years since March 2019). Further, the project has shown several irregularities, like the misuse of its livestream.
Users have also claimed it to be a multi-layer marketing scheme where users need to refer it to others so that they can increase their mining speed. Further, the amount of Pi a user can withdraw to the mainnet also depends on the number of users you have helped join and the level of KYC done by your recommended users.
A multi-layer marketing is a pyramid scheme where the network is grown by recommendations, and the users are promised rewards based on the number of people they have recommended.
The tweet below states against another claim that the Pi Network team claims Pi could rival Bitcoin. The user terms this as an absurd statement. In our view, it is highly aspirational, but an outright claim that Pi could disestablish Bitcoin in any way is increasingly leaning toward being a fraud.
Yet, many analysts are in support of the Pi Network and claim it might have a bright future. Among them, Kim Wong is an analyst who claimed that Pi Network was a genuine project with over 100 million users spread across 200 countries globally and has provided financial access to them. The user also responded to the criticism around the KYC process introduced by Pi Network, saying that KYC is the new norm in crypto and helps establish a project's credibility in the ecosystem.
KYC has been a controversial topic in the crypto markets for a long because it violates the privacy of the user and increases centralization of control. Centralization and privacy are the core tenets of decentralized governance in blockchain technology.
Amid the tussle between Pi users and Pi critiques, several other scams are currently running in the name of Pi Network. Below are two such frequent scams that we saw on social media.
At a time when even Presidents are not left untouched by scams, users are often left at a high risk.
Several IOU scams have also surfaced among Pi users. Scammers have been contacting users asking them to sell their Pi tokens. They have been creating FUD around the Pi Token by circulating news that the Pi token could crash. This FUD then prompts the users to sell their tokens at whatever price they get.
IOU is a pre-arranged custom derivative contract where users can buy and sell crypto in P2P mode much before it is launched. It works in a way similar to Future Trading.
At press time, the IOU trading price for Pi Coin was between $80 to $150 based on the prices quoted by different platforms.
Several users have been bombarded with messages claiming to be Pi representatives and asking them to hand over their private keys for Pi Coin migration.
Such scams were earlier seen in many cases, like Trust Wallet, where scammers posed as officials and claimed they would help users. Once they successfully obtained the wallet keys, they would simply drain the wallets.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.