Crypto scams are not new to the crypto space. This is because the industry is still in its infancy and it has a lot of room for improvement.
Some of the most common scams include projects that don't have a working product or any kind of prototype. Projects that have been abandoned or are being sold off to another company. Projects with a lot of red flags in their whitepaper, ones that promise improbable returns with little or no risk, etc.
Screenshot from playstore
A lot of things indicate that Pi Network might be a scam. Investors should do research before investing in this cryptocurrency and make sure they are aware of all the risks involved in this investment.
It operates a pyramid scheme
To understand how Pi Network operates, it is important to know how multi-level marketing (MLM) or pyramid scheme works. A pyramid scheme is an illegal business model that rewards people for recruiting new members instead of selling a product or service. To maintain the pyramid structure, a participant must recruit someone else into the program each time they advance up a level in the pyramid.
The Pi Network is a Decentralized network that has been accused of being a scam. The company operates similarly to MLM or pyramid schemes, in that participants are rewarded for inviting more people to join.
It provides no utility
The Pi Network is a decentralized blockchain-based platform that included a utility-based system as one of its goals.
The Pi Network has been in development for some time now, and it seems that they have not yet reached the stage of providing any utility to its users.
The developers state that this is one of their goals - to provide utility to their users. However, at this point, no such utility exists on the Pi Network.
No open mainnet launch and no coin listing
The Pi Network has not been able to launch its open mainnet and nor has it been able to list its coin on any exchange, although the whitepaper included a plan for this deployment, but no data.
This adds to the popular opinion that Pi Network is a scam and should be avoided at all costs.
Users add value to the system without remuneration
The business model of the company collects personal information from the users and gets them to add value to their service without getting anything in return. Thus, the users are the products, the users make money for the system, and are not being compensated for adding value.
Founders are already benefiting
This is a possible scam and investors should beware because the founders are already benefiting from video ads, even when the Pi coin hasn't been listed yet.
The founders of Pi Network are taking advantage of the currency hype, earning from ads, and they are using this money to benefit themselves.
Conclusion
It is vital to do your research before opting for this project because it's a high-risk investment that has the potential to fail. Again, its price prediction is mere speculation, as it is currently providing no value but the creators are benefiting. The only thing is that you are currently not investing any money except time and personal information, and if you have no objections doing this, you can go on and mine Pi.
Reference
Pi Network: The New Bitcoin — Or a Scam?
Posted Using LeoFinance Beta
I stopped taking them seriously since last year December, all they seem to be after is the adds revenue generated from the user.
Hahaha. I have had a lot of people talk me into creating an account. Once I satisfy them for a few days, I would delete the app to save space for other things.... I don't know why I didn't take them seriously right from the beginning.
Good, you saw their shady ass right from time, a friend pressure me into registering but I discard the app not long after.
We are in this together then. 😉
Thanks for this feedback
Posted Using LeoFinance Beta
Any day🥂
I was invited a few months ago to be part of this network. but I never entered and I never made an account
Posted Using LeoFinance Beta
Well, you are safe. You won't have to share your personal details with them since you have no business with them.
Thanks for this feedback about Pi Network
My pleasure. 🙌
Wow. This is quite a revelation. We are involved, but have not invested ant money.
WE understand that they have launched an experimental marketplace, where participants agree to trade items at a price of $100.00 per pi.
Let's home it comes good, but this article has raised some legitimate red flags, particularly where the operators are benefiting
from the scheme, where the members are not.
DYOR
Posted Using LeoFinance Beta
At this point, no one is investing any money only their time and personal information. Those who are putting money are those buying accounts that meets certain criteria from others.
It's better one does their own research before putting money into any thing. Thanks for your thoughtful comment.
Interesting
I installed the app and ran it for a while, but when they wanted KYC before the mainnet launch I removed it.
!ALIVE
!CTP
Lol. Asking for KYC before the mainnet sure is a red flag. Thanks goodness you shut them out
@edystringz! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @flaxz.ctp. (1/20)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
Yeah, I saw their ads multiple time on my device and then went to see the reviews, everyone complaining about the app and payments.
Never trust such ponzi craps.
Posted Using LeoFinance Beta
When everyone is complaining about something you can be sure there's something off. I am glad you did your diggings and discover their true nature.
I thought I was the only one thinking about this. Because it's been years now and nothing to hold onto to classify them as a legit crypto project. Just talks and cruise
Posted using LeoFinance Mobile
I tell you. There's definitely nothing tangible except talks and cruise. Thanks for reading.
The biggest red flag for me is how much of the token supply the dev team has allocated to themselves.
Posted Using LeoFinance Beta
That is a huge flag too. Tokens are supposed to be spread out to different investors instead of hoard by the dev team.
It sure looks more like a scam than anything. Almost on a daily basis I encounter Pi investors sneaking into my DMs on some web2 platforms trying to get me onto their referral links for no convincing reason.
Posted Using LeoFinance Beta
That's what they all do. They had gone quiet for a while and started again a few weeks ago. I saw lots of people asking to buy accounts of folks who might have been mining consistently in the past and had their KYC completed.
They've been so misguided into believing in a project that have died even before it arrived.
Posted Using LeoFinance Beta
That's right. It makes it feel like an abusive relationship where the abusers keep apologizing with gifts, flowers, and chocolates and promising to change to get their partner's acceptance. Only for them to turn round and keep on abusing them, while the promise flies out of the window, once they gain control.
The team around Pi is behaving in this manner. Finding a hook and using it to bait the crowd into thinking they are back for good. Whereas, everything is self-centered.
That's pathetic.
Posted Using LeoFinance Beta
This are certainly a lot of red flags.
I once received an invitation from a friend to join, but I ignored it since I am not familiar with the crypto.
Thanks for sharing.
!1UP
Posted Using LeoFinance Beta
It's great you ignored then. But are you still unfamiliar with crypto?
In general, I would say that I am now familiar with crypto. Not on a lot of specific crypto though. 😊
That's okay. What matters is that you are progressing.
Yup. Thanks for the encouragement. 😊
You are welcome
I never trusted this project and my intuition has paid off, I believe. :)
Yes, it certainly has.
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