Pi Network Token Plunges 65% Following Mainnet Launch Amid Scam Allegations

Pi Network’s native token, PI, experienced a dramatic drop of over 65% following the highly anticipated launch of its mainnet on February 20. The launch of the "Open Network" allowed users to access centralized exchanges, marking a significant milestone for the project. However, as the PI token was listed on various crypto trading platforms, the price quickly plummeted, raising questions about the legitimacy of the project.

Pi Network Launches Mainnet, but Token Price Crashes

On February 20, Pi Network officially launched its Open Network, enabling users to trade the PI token on centralized exchanges for the first time. The project listed the PI token on several well-known platforms, including Bitget, OKX, and MEXC, in an effort to expand beyond its internal ecosystem.

Despite the initial excitement surrounding the mainnet launch, the token’s price soon began to fall sharply. After peaking at $1.84, the price of PI quickly dropped to $0.64, a decline of more than 65%. This steep crash has raised concerns among investors and analysts, especially in light of the ongoing questions surrounding the project's credibility.

Bybit CEO Accuses Pi Network of Being a Scam

While some exchanges embraced the PI token, others, like Bybit, have distanced themselves from the project. Bybit CEO Ben Zhou took to social media to accuse Pi Network of being a scam. Zhou referred to a 2023 warning issued by Chinese authorities, who had cautioned the public about Pi Network, labeling it a "scam" that allegedly targeted elderly people.

In his post, Zhou challenged the Pi Network team to address the legitimacy concerns raised by the Chinese police. He also clarified that Bybit had never requested to list the PI token, dismissing claims that the exchange had been denied a listing. Zhou wrote, “Bybit had made no listing request to $PI, and the claim that $PI refused Bybit listing or Bybit did not pass some sort of KYB of $PI is completely nonsense.” The CEO emphasized that Bybit had no plans to list the token in the future.

Allegations and Controversies Surrounding Pi Network

Pi Network has faced significant skepticism since its inception. The project claims to have amassed over 60 million users, but blockchain explorers show a significantly lower number, with only 9.1 million users visible on the network. The project also claims to be decentralized, yet it remains under the control of its core team, with no independent validators present on the network.

One of the key features of Pi Network is its ability to allow users to mine cryptocurrency directly from their mobile phones, bypassing the need for expensive, energy-intensive hardware. However, this has raised questions about the sustainability and legitimacy of the project, as traditional cryptocurrency mining is known for its high energy consumption and the use of specialized equipment.

Looking Ahead: What’s Next for Pi Network?

The sudden crash in the price of the PI token, coupled with accusations of fraud and questions about its user base, has cast a shadow over Pi Network’s future. While the project has made strides in increasing its accessibility by listing on major exchanges, it faces an uphill battle to convince investors and critics of its long-term viability.

With accusations of being a scam still circulating and no official response from Pi Network at the time of publication, the project must address these concerns if it hopes to recover from this sharp price decline. The community and broader crypto market will likely be watching closely for any updates or clarifications from the Pi Network team as they navigate these challenges.

As Pi Network continues to unfold its Open Network, only time will tell whether it can overcome the allegations and prove its legitimacy to the wider cryptocurrency community.