<h3 id="pi-network-faces-heavy-criticism-over-centralization-and-tokenomics">Pi Network Faces Heavy Criticism Over Centralization and Tokenomics</h3>Justin Bons and Bybit CEO Label Pi Network a ScamJustin Bons, founder of Cyber Capital, has strongly criticized Pi Network, labeling it a scam and an MLM (multi-level marketing) scheme. He argues that Pi’s model contradicts decentralization principles, requiring KYC verification even for simple fund transfers.Bybit CEO Ben Zhou also called Pi Network the &#34;largest pyramid scheme,&#34; reinforcing concerns about its legitimacy. Notably, his exchange refused to list Pi, a stance Binance also took.Concerns Over Delayed Mainnet and Centralized ControlOriginally conceptualized by Stanford PhDs Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, Pi Network was launched in 2019 but failed to deliver a mainnet for over five years. It was finally launched on February 20, 2025. However, users still face withdrawal restrictions unless they complete KYC and ensure their entire referral circle does the same—a structure critics argue resembles an MLM.Bons also claims that Pi Network&#39;s core technology is a direct copy of the Stellar Network, a permissioned blockchain.Opaque Tokenomics Raise Red FlagsPi Network’s tokenomics have also come under scrutiny. Bons criticizes its lack of transparency, stating that there is no disclosure on insider holdings. Additionally, Pi requires users to lock in tokens for extended periods in exchange for a minor boost in mining rate, further limiting accessibility.Despite these concerns, Pi Network holds a significant market position, ranking as the 23rd largest cryptocurrency with a $6 billion market cap and a trading price of $0.88 at the time of writing.Skewed Token Supply and Market RisksOnly 6.7% of Pi’s total 100 billion token supply is in circulation, raising concerns about future price stability. High uncirculated supply can lead to price suppression as more tokens enter the market.A similar issue affected Worldcoin, which lost investor confidence due to unfavorable tokenomics. Ethereum has also faced criticism over its infinite supply model, whereas Bitcoin’s fixed supply of 21 million BTC has contributed to its value stability.<h3 id="strong-disclaimer-strong">Disclaimer:</h3>Voice of Crypto strives to provide accurate and up-to-date information but does not take responsibility for potential inaccuracies. Cryptocurrencies are highly volatile; conduct your own research before making financial decisions.

Pi Network Under Fire: Justin Bons Aligns with Bybit CEO’s Criticism

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