Justin Bons Criticizes Pi Network, Claims It Lacks Decentralization
Justin Bons, founder of CyberCapital, has labeled Pi Network as a scam, citing serious issues with its technology, centralization, and mining model.
- Bons criticized Pi Network for its lack of true decentralization, claiming it demands user identity verification for basic transactions.
- He noted the delayed mainnet launch and suggested that the technology is based on Stellar without significant innovations.
- Pi Network lacks a Turing-complete virtual machine, limiting its potential for DeFi integration.
- Bons described the referral-based growth model as similar to multi-level marketing, adding costs without real value.
- He criticized the mining structure as "Ponzi-like," benefiting early users at the expense of perceived value.
- Bons raised concerns about transparency, alleging insiders may control around 20% of the total token supply.
Bons expressed disappointment that Pi Network ranks among the top 20 cryptocurrencies, echoing concerns previously voiced by Bybit CEO Ben Zhou about its legitimacy.
The Pi community is facing backlash from Binance after the exchange chose not to list the token despite strong community support. This has led to negative app store reviews and criticism towards Binance's decision-making.
Binance warned against pressure tactics, stating that negativity could result in blacklisting. Following these events, Pi Coin has experienced sharp declines in its market performance.
Future developments will determine if Pi Network can address these criticisms and improve its standing in the crypto space.