Once hailed as revolutionary in cryptocurrency, Pi Network now faces intense criticism for centralization and questionable operations.
The Decentralization Illusion in Pi Network
Despite claims of decentralization, Pi Network remains highly centralized. Every transaction requires KYC, contradicting blockchain's core principles. Even after five years, it lacks a functional mainnet, casting doubt on its legitimacy. The project's core technology is copied from Stellar, yet disorganization hinders app development.
Dubious Mining and Referral Schemes
Pi Network promotes a mobile-based mining process that does not secure the network. Instead, it serves as a ploy to attract users. Resembling an MLM scheme, the referral system rewards users with a portion of recruit revenue, alongside a token-locking mechanism reminiscent of Ponzi-like structures.
Lack of Transparency and Insider Concerns
Transparency is a major issue for Pi Network. Official sources deny insider allocations, yet independent reports suggest otherwise. According to CNN, insiders may control over 20% of the total supply, raising doubts about the project's credibility.
Pi Network faces significant trust issues due to centralization, lack of transparency, and aggressive marketing schemes. Investors should be cautious before making decisions.
