Bybit CEO Labels Pi Network a Scam, Citing Official Chinese Police Warning

Bybit CEO Labels Pi Network a Scam, Citing Official Chinese Police Warning

Bybit CEO Ben Zhou has issued a strong warning about Pi Network, calling it a scam and citing an official Chinese police warning from 2023. The alert, which focused on the network’s alleged targeting of elderly users, has stirred further concerns within the cryptocurrency community.

Official Warning Cited

In a post on X, Zhou referenced a 2023 Chinese police notice that cautioned the public about Pi Network. According to the warning, the project employs tactics that leak personal data and endanger the pensions of elderly individuals. Zhou emphasized:

“Yes, I still think you are a scam, and no, Bybit will not list scam.”

He dismissed claims that Bybit’s decision not to list the PI token was due to failing KYB procedures, stating unequivocally that the project’s legitimacy is in serious doubt.

Similarities to Past Crypto Scams

Critics of Pi Network point to its referral scheme and token lock-up mechanism, which bear resemblance to notorious crypto Ponzi schemes such as Bitconnect and Hex. These features have led some observers, including prominent voices on X, to label the project as the “biggest ponzi” in the space. Since its mainnet launch on Thursday, the PI token has experienced a sharp decline, dropping more than 60% from its peak on launch day.

Market Response and Trading Activity

The PI token made its debut on OKX at $0.67, spiked as high as $2, and then slumped to around $0.69. Despite these fluctuations, the token has amassed a market cap of approximately $4.18 billion based on a circulating supply of 6.33 billion tokens. With an inflationary design and a maximum supply of 100 billion tokens, the fully diluted valuation could reach an estimated $67 billion if current prices hold. At launch, the FDV briefly surged to nearly $200 billion, almost double that of competitors like Solana.

Broader Context and Industry Impact

While Pi Network faces mounting skepticism, several exchanges—including OKX, Bitget, and Gate—have reported a combined trading volume of $620 million in PI trading pairs. However, the controversy is compounded by the fact that Bybit itself recently suffered a $1.5 billion hack attributed to North Korea's Lazarus Group.

As the debate intensifies, Pi Network has yet to respond to requests for comment. Meanwhile, industry participants remain cautious, weighing the potential risks of engaging with a project that has been linked to fraudulent schemes in the past.

Stay tuned to The Horizons Times for further updates and in-depth analysis on this developing story and other key events in the cryptocurrency space.