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The crypto community has once again been stirred by controversy as Pi Network finds itself at the center of scam allegations. The situation escalated after Bybit CEO Ben Zhou publicly questioned the legitimacy of Pi Network, labeling it a potential scam. The ensuing back-and-forth between Pi Network representatives and Zhou has sparked a heated debate about the project’s credibility, past controversies, and its standing in the crypto space.
Bybit CEO Calls Out Pi Network
The controversy ignited when an X (formerly Twitter) account, which described itself as the “unofficial technical team” of Pi Network, made bold claims about the project’s stance against Bybit. According to the post, Pi Network had rejected a listing offer from Bybit, insinuating that the exchange was losing its grip in the market. This statement quickly drew a sharp response from Bybit’s CEO, Ben Zhou, who did not hold back in his criticism.
Zhou oaccused Pi Network of being a scam, citing a 2023 report from Chinese authorities that warned users about a fraudulent operation allegedly preying on older individuals. “Yes, I still think you are a scam, and no, Bybit will not list scams,” Zhou wrote in a fiery post.
Read Also: Is Pi Network The Future of Mobile Mining or Just Hype?
Further fueling the controversy, Zhou clarified that Bybit had never even submitted a listing request to Pi Network, challenging the project to prove its legitimacy by addressing previous reports that cast doubt on its operations.
Pi Network Denies Bybit Allegations
Pi Network swiftly responded to the allegations, asserting that no official engagement had taken place between their team and Bybit. In an official statement a Pi Network spokesperson confirmed that Bybit had not submitted a Know Your Business (KYB) verification request, a standard process that ensures transparency and compliance in business partnerships.
The spokesperson echoed Zhou’s assertion that no listing request had been made, stating, “Pi Network has not been asked to KYB Bybit.” They further clarified that there was no official relationship between Pi Network, Bybit, or its CEO.
Read Also: Bybit Hack Shakes Crypto World: $1.4 Billion in Ethereum Vanishes Overnight
Adding another twist to the saga, Pi Network also distanced itself from the X account that initially provoked Zhou. “Mr. Zhou’s posts regarding Pi Network appear to have been in response to posts made by an individual unaffiliated with Pi Network,” the spokesperson added, implying that the controversy stemmed from misinformation rather than official Pi Network statements.
Pi Network (PI) Price Fluctuations
The public dispute had immediate repercussions on Pi Network’s price. On February 20, following Zhou’s remarks, the value of Pi Network’s native token ($PI) plummeted, dropping from $1.84 to $0.61 in a matter of hours. The sharp decline indicated a significant loss of confidence among investors and traders.
However, in a surprising turn of events, Pi Network rebounded strongly. By February 26, the token reached a new all-time high of $2.99, showcasing its resilience despite the negative publicity. This volatility underscores the speculative nature of cryptocurrencies and how public statements from industry leaders can sway investor sentiment dramatically.
Addressing the “Pi Network Scam” Allegations
Beyond the Bybit controversy, Pi Network also addressed broader allegations regarding its credibility. A major point of contention has been its association with a police warning issued in China. Zhou referenced this warning as part of his scam accusations, suggesting that Pi Network was under scrutiny from Chinese authorities.
Pi Network refuted these claims, stating that the warning was related to fraudulent actors impersonating the project rather than Pi Network itself. The company emphasized:
“To be abundantly clear and to avoid any ambiguity, Pi Network is not affiliated with, did not authorize, and did not engage in any activity related to the police warning. Pi Network has not been contacted by any police department in China regarding this incident.”
The firm also condemned any activities by bad actors who misuse Pi Network’s name for fraudulent purposes.
Pi Network’s User Base: Real or Inflated?
Another frequent criticism directed at Pi Network is the accuracy of its user base statistics. Skeptics often claim that the project inflates its numbers to appear more successful than it is.
Pi Network maintains that its 60 million Engaged Pioneers refers to active application users rather than blockchain wallet holders. The company pointed to its 100 million+ downloads on the Google Play Store as evidence of widespread adoption.
As for the 10.8 million users displayed on blockchain explorers—often cited by critics to downplay Pi Network’s reach—the company clarified that this number represents only those users who have successfully created a Pi wallet on the blockchain. Since migrating to the mainnet requires multiple steps, including Know Your Customer (KYC) verification, this number is naturally lower than the overall engaged user count.
Is Pi Network a Scam or a Misunderstood Project?
The allegations against Pi Network are not new. Since its inception, the project has faced scrutiny over its unconventional mining model, which allows users to earn Pi through a mobile app rather than traditional mining hardware. Some argue that this model lacks transparency and could be unsustainable in the long run.
However, Pi Network continues to push back against these claims, asserting that it is building a decentralized, community-driven ecosystem that will provide real utility to its users. The company’s rebuttal to the Bybit allegations suggests that it remains committed to countering misinformation and maintaining its legitimacy within the crypto space.
Conclusion
The Pi Network scam allegations resurfaced after Bybit CEO Ben Zhou’s direct accusations against the project. While Pi Network strongly denies any wrongdoing, the controversy has highlighted key concerns about its operations, past regulatory warnings, and user base statistics.
The price fluctuations following the public dispute further illustrate the volatile nature of cryptocurrency projects reliant on community trust. While Pi Network has managed to weather past controversies, its long-term legitimacy remains a hot topic among crypto enthusiasts.
For now, investors and potential users should conduct thorough research, remain cautious of misinformation, and stay updated on Pi Network’s developments before making any investment decisions. Whether Pi Network is a groundbreaking innovation or a project shrouded in red flags is still up for debate, but one thing is clear—the crypto community will be watching closely.
