TL;DR
- Pi Coin has dropped more than 34% over the past week, trading below $1 and registering a trading volume exceeding $665 million.
- Justin Bons, founder of CyberCapital, harshly criticized Pi Network, highlighting its lack of decentralization and a questionable mining model based on Stellar.
- Binance refused to list Pi Coin, creating tensions with the community and increasing doubts about the project’s legitimacy and future.
Pi Coin has experienced a sharp decline in its market value, losing over 13% in a single day and accumulating a weekly loss of more than 34%. According to the latest data from CoinMarketCap, the token is currently trading just below $1. Additionally, its trading volume has surged by 80%, surpassing $665 million.
The decline pushed it out of the top 20 cryptocurrencies, a significant setback for a project that had generated high expectations since its inception. The crash is primarily attributed to uncertainty caused by delays in Pi Coin’s listing on Binance and the lack of a clear roadmap for the launch of its mainnet. These factors have weakened investor confidence, with many now questioning the project’s true potential and transparency.
Criticism toward Pi Network extends beyond its recent performance. Justin Bons, founder of CyberCapital, labeled the project a scam, arguing that it lacks true decentralization and relies on a questionable mining model. According to Bons, the network requires identity verification even for basic transactions, which contradicts the core principles of the blockchain ecosystem.
Does Pi Coin Lack a Solid Foundation?
Additionally, Bons stated that Pi Network’s technology is based on Stellar and lacks real innovations, limiting its ability to integrate into the DeFi sector. His claims have sparked intense debate, particularly regarding the lack of transparency about the number of tokens controlled by the developers, who could hold up to 20% of the total supply.
Conflicts with Binance
Binance’s decision not to list Pi Coin has intensified tensions with the project’s community. Although the token received a high number of votes in a community poll, the platform chose not to include it in its market. This triggered a wave of criticism and negative reviews against the exchange, prompting Binance to warn about potential sanctions for pressure tactics.
Despite these challenges, the project has continued developing its ecosystem. Recently, “.pi” domains were auctioned, and a dedicated section was enabled in its browser to manage these domains. While some see this as progress toward a decentralized Web3 ecosystem, doubts about the project’s legitimacy and future persist
