Pi Network announced on February 20, 2025 that it will launch and brought legal debates on the functioning of the project. Experts, Pi Network’s reference -based mining system may have a structure similar to a pyramid scheme, and this may cause legal problems in some regions, he says.
Pi Network’s launch creates controversy
Pi Network has announced that it has more than 19 million authenticated users. He also announced that it reached 10.14 million by exceeding the target of 10 million main networks. With the launch of the open network, Pi users will be able to interact with different block chain systems.
However, the growth of the project and the fact that more global users reached more users attracted the attention of experts. Journalist Colin Wu, known in the crypto world, warned the activities of Pi Network and said:
“With regard to PI, if you still want to go to China from time to time, I suggest you not to report it or not to touch your PIs.”
He said that participation in Pi Network in countries with strict arrangements against pyramid schemes such as WU and China may have serious legal and financial consequences.
Legal Warnings for Pi Network from experts
METAVERSE Project Founder Ab Kuai Dong, Pi Network “The largest pyramid scheme in Chinese spoken in the world”as defined. He stressed that the platform has a low entrance barrier and that users can only mining on their mobile devices.
Kuai Dong stated that Pi Network’s growth model is based on the invitation system and that this structure can be suspected by many regulatory institutions and used the following statements about PI:
“You should invite others to increase the mining rate. As the number of users increases, mining awards gradually decrease. It is said that PI Coin can be used in the real world. In fact, Pi Coin holders believe that the future market value can compete with Bitcoin’s. ”
The current location and future of Pi Network
Crypto commentator Crypto V acknowledges that Pi Network has a pyramid marketing structure, while refraining the project as a direct fraud.
Crypto V made the following assessment of Pi Network’s system:
“Pi is a structure based on local marketing and the pyramid system, but not a fraud.”
Stating that Pi Network is a mobile application -based mining platform launched in 2019, Crypto V also added that the project depends on the growth model of its users:
“The team said without any hesitation to the community: Pi has no monetary value. Since it is only called ‘coin’, it does not have to have a value. Pi will only become valuable when the community grows and more users win. ”
What awaits Pi Network users?
Pi Network’s user base is especially concentrating on disadvantaged communities in Southeast Asia, South Asia, Nigeria and Europe and America. For many people, this platform is seen as one of the easiest ways to enter the crypto world.
However, experts say that the centralized structure and regulatory risks of the project should not be ignored. Following the open network launch, the project is eagerly awaited how the project will follow and how legal regulators will react to it.
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