Pi Network Responds to Controversy, Bybit CEO Ben Zhou Labels It a Scam

Pi Network has defied some negative expectations, with its token securing a spot in the top 100 cryptocurrencies by market capitalization.

Pi Network, the cryptocurrency project that has been a subject of both praise and skepticism, has seen its token remain in the top 100 cryptocurrencies by market capitalization despite some negative expectations. The project has also faced significant controversy, particularly from prominent figures in the cryptocurrency space.

Earlier this month, Ben Zhou, CEO of Bybit, one of the largest cryptocurrency exchanges, publicly labeled Pi Network a scam. His comments were based on police reports from Chinese authorities that described the project as a potential multi-level marketing (MLM) scheme. Zhou also introduced that Bybit would not list Pi’s native token, the Pi coin, on its platform.

In response to these allegations, Pi Network issued a statement clarifying its position. A spokesperson for the project emphasized that Pi Network does not operate as an MLM scheme. Unlike traditional MLMs, where participants benefit from referrals at multiple levels, Pi’s referral system operates on a single-level structure.

This means that if Person A refers Person B, and Person B refers Person C, Person A does not receive any bonus or benefit from Person C’s involvement. This clarification was an attempt to distance the project from the accusations and maintain trust with its community.

Furthermore, Pi Network highlighted that its mining system is designed to be accessible to a broad audience, aiming to provide an opportunity for those who might not have the technical expertise or resources to participate in more complex cryptocurrency projects. The project's goal is to introduce blockchain technology and cryptocurrency to a new generation of users.

However, despite these efforts, Pi coin has faced recent difficulties, with its price dropping significantly in recent weeks. Over the past two weeks, Pi coin has decreased in value by 22.5%. In the last 24 hours alone, the token has fallen by an additional 6%.

Currently, Pi coin is trading below $0.80, making it one of the worst-performing assets in the top 100 cryptocurrencies by market capitalization. This price movement is part of a broader bearish trend in the cryptocurrency market, which has seen a downturn across many tokens.

It's worth noting that the price decline of Pi coin does not appear to be directly related to specific issues within the project itself, but rather reflects the overall market conditions. As the cryptocurrency market continues to struggle, Pi coin's performance will be influenced by the same trends that are impacting other coins, such as Hyperliquid and Kaspa.

In other news, Pi Network is migrating to a new account verification system in a move to improve security and streamline the user experience. Previously, the network used phone numbers as the primary form of identification for users. However, the team encountered issues with this method, including unreliability and high costs, especially for users in certain regions.

To address these challenges, Pi Network is switching to an email-based two-factor authentication (2FA) system, which is expected to provide a more secure and dependable system for verifying accounts.

The new verification system will require users to complete additional steps during the migration process, ensuring a smooth transition to the new email-based system. This update is part of ongoing efforts by the Pi Network team to improve its infrastructure and provide a more robust platform for its growing user base.

As Pi Network continues to develop and expand, it will be interesting to see how these changes influence the project's future and whether it can overcome the skepticism surrounding its operation.