The controversy surrounding Pi Network continues to intensify as Simon Dedic, CEO of Moonrock Capital, raises serious concerns about the project’s operational model. In a post on X (formerly Twitter), Dedic labeled Pi Network as a “giant Ponzi,” questioning the authenticity of its trading volume and user base.
What I Learned About $PI in 15 Hours and 700 comments:
— Simon (@sjdedic) February 27, 2025
TLDR: Stay away at all costs.
Why?
1) @PiCoreTeam has been around since 2018-2019 and claims to have up to 65M users, mostly in Asia.
2) The thesis has always been to become a more efficient Bitcoin – no mining farms…
Red Flags in Pi Network’s Trading Volume
Dedic’s primary criticism centers on Pi Network’s reported $3.5 billion daily trading volume. A significant portion of this volume is concentrated on exchanges such as OKX, Bitget, and Gate.io. However, Dedic suggests that much of this activity could be attributed to wash trading, a deceptive practice where traders buy and sell the same asset to create the illusion of market activity.
Despite boasting a $26 billion fully diluted valuation (FDV) and a 60% token float, Pi Network appears to lack substantial engagement from the broader Web3 community. Instead, it has garnered a large following among non-crypto users, many of whom may not fully understand its mechanics.
Legal Scrutiny and Past Investigations
Dedic’s concerns are echoed by previous investigations into Pi Network’s credibility. In 2023, a Chinese police report flagged the project as a scam targeting elderly individuals. Additionally, Vietnam’s Cybercrime Unit launched an investigation two years ago, further fueling doubts about Pi Network’s legitimacy. Legal experts continue to warn of potential risks, questioning the prudence of listing Pi on major exchanges.
Pi Network’s Real-World Adoption and Market Sentiment
Despite the skepticism, some analysts defend Pi Network, citing its unique approach to cryptocurrency adoption. Businesses in Florida have started accepting Pi Coin for transactions, suggesting some level of real-world utility. However, its listing on major exchanges has not prevented a price decline post-launch.
Meanwhile, Binance is deliberating on whether to list Pi Coin, with a community vote set to conclude today. While some investors see a Binance listing as a validation of the project, others remain cautious. If listed, analysts speculate that Pi’s price could temporarily surge, with some predicting a price range of $5 to $10 by April.
Also Read: Pi Network Soars 54.4% to New ATH of $3 – Can It Hit $4 or Is a Correction Ahead?
As scrutiny intensifies, the crypto community remains divided over Pi Network’s future, leaving investors to navigate the uncertainty surrounding this highly debated project.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
