Pi Network has become a breeding ground for scams and deception. Many players who tried to exchange the virtual currency "Pi" have become victims of scams and lost their hard-earned money.
Several official media have clearly stated that they will publish relevant articles in 2023 to combat fraud. Cryptocurrencies are fun and profitable, but they can also be addictive. They sometimes devour investors' lives and destroy relationships with friends and family.
An unnamed South Korean college student, YSM, revealed in an interview with (Magazines) that his family has been struggling to cope with an application called Pi Network.
While YSM has doubts about the legitimacy of the project, his father, who owns a fried chicken restaurant, is convinced that this is the next Bitcoin.
“Whenever I visited my parents, my father would constantly push me to install the app and use his invite code to start mining Pi, which would lead to arguments and fights,” YSM told the magazine.
Pi Network has an unusual set of requirements for its miners!
Over the years, the project has faced accusations of being a scam and a pyramid scheme, even though it did not solicit any financial investments from users.
Instead, critics have scrutinized the network’s unusual know-your-customer requirements and the absence of a product tradable on the public market, and have questioned the motives of the project and its founders, Stanford University graduates.
Pi coin is not a new cryptocurrency. First, the Android app was released in December 2018. Four years later, Pi holders can’t do anything with the app. In contrast, many cryptocurrencies such as Aptos, Cronos, ApeCoin, and SweatCoin were launched this year.
Secondly, Pi Network already makes money through advertising on its platform. But all of these funds will go to the creators of the platform.
Third, it is unclear when Pi will be listed on exchanges. One possible reason why the developers have not pushed it on exchanges is that they already make money through advertising. Therefore, listing it on exchanges may affect this revenue.
AIMultiple analyst Cem Dilmegani claimed that Pi Network may not bring significant benefits to users, saying, "We do not believe that anyone other than the founders will significantly benefit from Pi Network." This is because it "like Direct sales or affiliate marketing systems that promise future rewards to users who bring in new users.” Dilmegani claims that the affiliate marketing system is used to drive traffic to the app, which is in turn used to sell advertising for the app developer. Dilmegani said, “Founders have benefited from the app as they launched optional video ads at launch to monetize their active user base.”
Dilmegani acknowledged that the Pi team could eventually launch a blockchain mainnet. However, he believes this is unlikely because it would cause the token to quickly depreciate after users sell off. "Then the token will no longer have value and users will no longer log in to click," which could eliminate the app's value to advertisers.