Pi Network has become a breeding ground for scams and deception. Many players trying to redeem the virtual currency 'Pi' have fallen victim to scams, losing their hard-earned money.
It has been reported that many accounts have been found posting in Pi Network's Facebook groups, claiming to buy Pi at high prices and asking users to transfer funds first before payment. However, once sellers transfer their Pi, the accounts disappear, and their efforts are in vain.
Scammers are increasingly targeting Pi Network users, sending small transactions from fraudulent wallets and impersonating the core team. These scams lead users to malicious websites to steal their passwords. For example, one user shared a post about nearly being scammed.
Pi Network user Ivan Gan stated that scammers locked him with a memo containing a phishing link 'the moment' the transaction was completed. Such scams are more common in Vietnam and other countries with a large number of Pi Network users.
The report also highlights the complexity of Pi Network's operations, as the project is still in the 'closed mainnet' phase, meaning transactions can only occur between participants and cannot take place on cryptocurrency exchanges. This legal gray area makes it difficult for authorities to effectively address the issue.
Concerns are growing, pointing out that the operation of cryptocurrency models like Pi has become 'extremely complex and unregulated.' Currently, police in multiple locations are investigating activities related to Pi cryptocurrency.
AIMultiple analyst Cem Dilmegani claims that Pi Network may not provide significant benefits to users, stating, 'We do not believe anyone other than the founders can benefit significantly from Pi Network.' This is because it 'resembles a direct sales or multi-level marketing system, promising future rewards to users who bring in new users.' Dilmegani claims that multi-level marketing systems are used to drive traffic to applications, which in turn is used to sell ads to application developers. Dilmegani stated, 'The founders have benefited from the app because they launched optional video ads at the start to monetize the active user base.'
Dilmegani acknowledges that the Pi team may eventually launch a blockchain mainnet. However, he believes this is unlikely, as it would lead to a rapid devaluation of tokens after users sell off. 'Then, the tokens will have no value, and users will no longer log in to click,' which could eliminate the app's value to advertisers.
As Pi Network continues to attract more attention, users must be cautious and vigilant when making any transactions.
Is this too good to be true? For Pi Network, many believe it is indeed the case. Critics of the network quickly point out that the lack of a real-time mainnet and inability to trade tokens are major red flags. They express concerns about the project's legitimacy, noting that despite a user base of over 100 million, the network has not demonstrated any tangible value or utility for its Pi tokens.
The speculation frenzy on exchanges like Huobi and XT, where the price of Pi surged to 62 USDT based on the IOU protocol, is often considered evidence that the hype is unsustainable, disconnected from the project's actual progress, and raises alarms about its viability.
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