Since its launch, the PI Network token has attracted significant controversy. Most recently, the OKX exchange has decided to list the token, drawing criticism from other exchanges. Notably, Bybit was vocal in its opposition.
On Wednesday, February 12, the OKX exchange announced the listing of the controversial PI Network token. This was after years of the token trading in an “Enclosed Mainnet” phase, where it wasn’t available on exchanges.
Still, the exchange listing announcement drew significant criticism, especially due to the token’s referral scheme. Some have even called the token a scam.
After OKX unveiled plans to list Pi Network, Bybit’s CEO Ben Zhou rejected the idea, calling it ridiculous. He explained that he doesn’t want to be “held up by middle-aged women and men asking them to return their hard-earned money.”
Other major players in the industry also distanced themselves from PI. For instance, according to the Chinese crypto journalist Colin Wu, crypto exchange Bitget deleted blog posts related to PI Network on its page. This comes after the exchange previously announced listing the token.
Why is The PI Network So Controversial?
Launched in 2019 by Stanford graduates, Pi Network focuses on enabling crypto mining on mobile devices. It has a significant user base, particularly in Asia, and recently hit 100 million downloads on the Google Play store. Still, it remains one of the most controversial crypto projects to date.
The biggest criticism is that the project does not really involve mining. Rather, users tap a button to get rewards. These rewards come not from mining but from referrals and daily activities. This has prompted some to label the project as a pyramid scheme.
While users don’t have to pay into the network to get rewards, its model depends on recruiting new users. A large user base indirectly boosts the project’s size and makes its token more attractive, enabling founders to monetize these referrals.
Furthermore, users have encountered issues with withdrawing tokens. Specifically, the project requires users to perform Know Your Customer (KYC) verification before accessing their tokens. However, verification is slow, with millions of users still waiting for it.
