Unlike Bitcoin, Pi Network Allows Users to Earn Tokens by Pressing a Daily Button

Initially, the project saw massive adoption, boasting over 60 million active users. However, Pi Network faced criticism for not allowing withdrawals and keeping its ecosystem enclosed for years while pushing a strict KYC (Know Your Customer) verification process.

In the ever-evolving landscape of cryptocurrency, new projects are constantly emerging, promising innovative solutions and groundbreaking technologies. However, along with the excitement of new beginnings comes skepticism from established players in the industry.

Recently, Ben Zhou, CEO of cryptocurrency exchange Bybit, expressed his critical views on Pi Network, a project that has gained significant attention for its unique approach to token distribution and its handling of user data.

Unlike Bitcoin, which requires high-powered mining rigs, Pi Network allows users to earn tokens by pressing a daily button and inviting friends to join the network.

Initially, the project saw massive adoption, boasting over 60 million active users. However, Pi Network faced criticism for not allowing withdrawals and keeping its ecosystem enclosed for years while pushing a strict KYC (Know Your Customer) verification process.

One of the biggest controversies surrounding Pi Network is its KYC policy, which requires users to submit government-issued identification and facial verification. Unlike regulated exchanges that use licensed third-party KYC providers, Pi Network has no clear regulatory oversight governing its data collection process.

This raises serious concerns about data privacy and potential misuse of sensitive user information. There is no transparency about where KYC data is stored, who controls it, or how it complies with global privacy laws such as GDPR (Europe) or CCPA (California, USA).

Ben Zhou, CEO of Bybit, highlighted these issues, stating that Bybit will not be listing PI due to regulatory concerns and past warnings from Chinese authorities about fraudulent schemes targeting vulnerable users.

“We will not be listing $PI on Bybit. We have no plans to apply for any crypto licenses in 2024. We are focused on providing a compliant and secure exchange platform for our users,” Zhou said in a statement on Monday.

Zhou’s comments came after Pi Network finally launched its Open Mainnet on Feb. 18, allowing some users to transfer tokens outside its ecosystem.

This move was met with mixed reactions, with some users celebrating the long-awaited development while others remained skeptical about the project’s overall viability.

The cryptocurrency exchange CEO also shared a link to a 2023 report by the Chinese police, who issued a warning to the public about a crypto project that was reportedly used to defraud elderly people and steal their personal data and pension funds.

The police report, written in Chinese, did not explicitly mention Pi Network but described a project that closely resembled it, with a token that could be mined on a mobile app and a daily check-in requirement.

According to the report, members of the public were lured into the project with promises of easy and quick returns from cryptocurrency trading, but they later lost their savings and personal information to fraudsters.

“Here is a official police warning of $Pi from Chinese police back in 2023 warning to the public that it’s a scam targeted towards elderly folks which leaks their personal data and loss of their pension. There are multiple other reports out there…” Zhou said.

Pi Network responded to Zhou’s accusations, stating that the project is aware of the circulating misinformation and had previously issued a statement to clarify any misunderstandings.

“We are focused on building a secure and compliant technology that benefits everyone,” a spokesperson for Pi Network said.

However, SocialChain Inc., the company behind Pi Network, remains unregistered with financial regulators, raising further questions about the project’s legitimacy.

Despite ongoing skepticism, Pi Network is reportedly seeking a listing on Binance, which could boost its credibility and liquidity.

Binance has not yet responded to a request for comment on whether it is considering listing PI. But insiders suggest ongoing discussions about PI’s potential integration into the exchange’s spot trading market.

A listing on Binance could further fuel PI’s ongoing price rally, attracting more traders and potentially pushing the coin’s price toward its next resistance level of $3.