Bybit CEO Ben Zhou has publicly denounced the Pi Network, a cryptocurrency platform, calling it a scam and referencing a Chinese police warning that surfaced in 2023. This warning alleged that Pi Network targets vulnerable elderly individuals, potentially compromising their personal data and leading to financial losses.
Zhou made it clear that Bybit would not be listing the newly launched PI token, which went live recently amidst the controversy. In his statement on X, Zhou expressed skepticism about the project’s legitimacy, stating, “Yes, I still think you are a scam, and no, Bybit will not list scam.”
The Pi Network’s token debuted alongside its mainnet release, offering users who had “mined” tokens the ability to transfer and sell them. However, this launch was marred by the pressing concerns of its business model, which featured referral bonuses that some critics have likened to classic Ponzi schemes, particularly noting similarities to Bitconnect and Hex.
Zhou highlighted that the token had already seen a substantial decline, having dropped over 60% from its initial value. The PI token initially launched at $0.67 on OKX, surged to approximately $2, and subsequently fell 65%.
The referral incentivization strategy, which rewards users for recruiting others, has raised red flags and drawn parallels to previous Ponzi schemes. Additionally, the option to lock tokens for increased future rewards resembles tactics used by other controversial projects, like Hex.
The market capitalization of the PI token stands at $4.18 billion, with potential inflation raising its maximum supply to 100 billion, yielding a fully diluted value of around $67 billion. At launch, this number was reportedly as high as $200 billion.
Despite these concerns, the PI token has seen significant trading volume on other exchanges, including OKX and Bitget, which collectively reported $620 million in trading volume for PI-related pairs.
For further insights and developments on this matter, you can refer to the Chinese police warning here.
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