Pi Network (Pi Coin) at the end of the highly anticipated official launch. The tokens were then listed in several stock exchanges. However, the price of Pi Coin saw a harsh decline. For this reason, Pi Coin has been the subject of discussions for a while. Initially, what seems to be an innovative blockchain project aimed at bringing crypto money to mobile phones is struggling with various allegations and reports that pointing to suspicious practices. Thereupon, China warned Pi Network.
Pyramid scheme and multi -level marketing claims for Pi Coin!
One of the main concerns surrounding the Pi Network (Pi Coin) is a routing -based mining system, which is a striking similarity to the multi -level marketing (MLM) structure. In this structure, users are encouraged to invite others to participate in the platform and these members become part of the original user’s “sub -line .. This creates a hierarchical system in which more members of the collects increase the mining rates and provide financial benefits.
China’s Hunan Province Hengyang City Public Security Bureau tagged Pi Coin as a fraud in a July 2023 statement. In this context, especially the hierarchical invitation mechanism pointed out. This application, which rewards recruitment for gaining new members, is a basic feature of pyramid schemes.
Serious claim: Hunting the elderly!
According to reports, Pi Coin unfortunately included plans targeting the elderly. According to a statement by the Public Security Bureau of Wuxi, fraudsters convinced elderly individuals to download the mobile application using Pi Coin’s promise to be rich overnight. Frauds usually claimed that users could use free Pi Coin mining by using only their phones and inviting others to do the same thing.
Some police reports show events in which elderly individuals have deceived sensitive personal information, such as identity cards as part of the registration process. This exposed them to other risks, including identity theft.
Data leaks and Privacy Concerns at Pi Network (Pi Coin)
Another important problem that Pi Coin faces is about serious confidentiality violations. In May 2021, a large -scale data leakage, including the personal information of about 10,000 Vietnam citizens, occurred. The leakage containing sensitive data such as ID card numbers, phone numbers and home addresses was allegedly linked to Pi Network. Although Pi Network rejected the responsibility of the leak, claiming that the data was seized by Yii, a third -party service provider, but this incident has further damage the reputation of the project.
