Pi Network token reaches new ATH amid allegations of fraud and market skepticism
Pi Network’s native token has soared to a new all-time high less than a week after its mainnet launch despite mounting concerns over its legitimacy.
CryptoSlate’s data shows Pi is up over 30% over the past 24 hour and has surged over 200% in the last seven days, hitting a record-high of $2.98.
During this period, Pi’s trading volume surpassed $3.5 billion, placing it among the most traded cryptocurrencies in the industry.
Based on these figures, Pi’s self-reported market capitalization exceeds $18 billion, positioning it among the top 15 digital assets by market cap.
Pi scam allegations
While Pi Network’s rapid growth has attracted attention, skepticism surrounds its credibility. Critics claim that its structure is similar to a pyramid scheme and there are still concerns about transparency.
Ben Zhou, the CEO of Bybit has publicly criticised Pi, citing a Chinese police report that labelled it fraudulent. He claimed that the authorities had accused the project of targeting older people, harvesting their data and contributing to financial losses including the depletion of pensions.
Moonrock Capital’s CEO, Simon Dedic, has also voiced doubts about Pi’s legitimacy. In a social media post, he questioned the accuracy of Pi’s reported $26 billion fully diluted valuation and 60% token circulation.
Dedic is a stated:
“Pi Network has built a strong cult following among non-crypto users who shill it purely for financial reasons, without even understanding what PI is supposed to do.”
Considering this, Dedic concluded that Pi’s token holds no real value and predicted a 99% price drop over time.
He wrote:
“This is just a giant Ponzi that faked it till they made it. They went mainstream by leveraging word of mouth marketing and promising “free money”. Definitely study PI’s growth tactics for your next word-of-mouth campaign, but don’t fall for the scam…The value of the product is zero PI, and I fully expect this to be down 99% in a few years.”
Pi dismisses all allegations
Pi Network has denied allegations of fraud repeatedly and made a recent statement denying the accusations. The following is a statement by the spokesperson In that regard, I am hereby dated February 22.
The team clarified a Chinese Police Department had warned of bad actors falsely linking themselves to Pi. The project stressed it did not have any connection with these individuals, and that authorities had not contacted them regarding this matter.
Pi Network reaffirmed its legitimacy by pointing out its six-year history of development and its active user base that exceeds 60 million. The team reiterated that their cautious approach was to ensure a successful launch and build up a strong community prior to fully deploying blockchain.
