Pi Network Responds to Recent Accusations Labeling the Project as a Scam and an MLM Scheme

Pi Network has responded to recent accusations labeling the project as a scam and a multi-level marketing (MLM) scheme. A spokesperson for the company stated that these claims are false and based on misunderstandings of how the project and its referral system actually work.

Recently, Pi Network has responded to accusations that the project is a scam and its token has no value.

Earlier this week, Bybit CEO Ben Zhou called Pi Network a “scam project” and said that his exchange would not be listing the PI token. Cyber Capital founder Justin Bons also had some critical remarks, calling it a “multi-level marketing type scheme” due to its referral system.

These comments have had a negative impact on Pi’s public image and its token value. After the mainnet launch on February 20, the price of PI reached a peak of $2.99 but has since dropped to around $0.82, according to data from CoinGecko.

However, Pi Network has now hit back at these claims, stating that they are false and based on misunderstandings of how the project and its referral system actually work.

No Financial Cost to Join Pi Network

Pi Network says that its program cannot be defined as multi-level marketing because there are no financial costs involved in joining the network or participating in the referral system.

As explained by Pi Network, users can mine PI tokens for free using a mobile app. The company developed the project to create a decentralized ecosystem powered by a secure and efficient blockchain network. To join the network, users only need to download the app, complete a short verification, and begin mining.

The company also noted that its referral program is only one level deep. If Person A refers Person B, then only those two benefit from each other’s activity. But if Person B refers Person C, Person A does not receive any bonus or benefit from C’s participation. This clearly separates their model from traditional MLM structures, where commissions can trickle down across multiple levels.

The referral bonus offered by Pi Network gives a 25% mining reward boost to both the person referring and the one being referred—but only when both are actively mining at the same time. Pi describes this as a simple incentive to encourage user growth and participation, similar to referral programs used by many tech and finance companies.

No Contact With Bybit for Token Listing

In response to the claims made by Bybit’s CEO, Pi Network stated that it never contacted the exchange about a token listing.

Earlier this week, a Bybit spokesperson responded to rumors circulating on social media about a potential listing of the PI token. In a statement to Blockավארություն, the exchange confirmed that it would not be listing the token.

The spokesperson added that in the past two years, a fake Pi Network account had contacted Bybit on Telegram, but the exchange’s anti-scam team quickly identified and shut down the account.

In response, Pi Network said that its team members only communicate using email addresses from the domain mineapi.io, and they would never contact any exchange using Telegram.

The company also shared a post from 2021, in which it warned the community about scammers impersonating Pi Network to approach exchanges.

“We are aware that some individuals or groups are attempting to impersonate Pi Network in an effort to scam exchanges into listing the Pi token,” the post said. “We want to emphasize that no member of the Pi Core Team will ever contact any exchange using Telegram or any other messaging app.”

Pi Network further explained that it is focused on building a strong, engaged community and delivering on its core mission to develop a new blockchain capable of supporting billions of users. The company added that it is grateful for the continued support from its growing community.