In a significant move for the cryptocurrency landscape, Bybit’s CEO, Ben Zhou, announced that his exchange will not be listing the newly launched PI token from the controversial Pi Network. This decision stems from serious concerns about the project’s legitimacy, as highlighted by a warning issued by Chinese authorities in 2023. Allegations suggest that the Pi Network has targeted vulnerable elderly individuals, leaking personal information and jeopardizing their pensions. Zhou emphatically stated on social media, “Yes, I still think you are a scam, and no, Bybit will not list scams,” a sentiment that resonates with multiple reports questioning the integrity of the Pi Network.
The PI token made its debut on Thursday alongside the project’s mainnet release, quickly drawing attention as users who had been “mining” tokens could finally sell them. The token initially launched at a price of [openai_gpt model=”gpt-4o-mini” prompt=”You are a news reporter covering the cryptocurrency industry. Given the article description, provide an introductory overview of the news in an informative style. AVOID using overly technical terms or details! DO NOT offer recomendations to buy or sell any assets! Analyze from a fact-based perspective and bring in additional research when claims are made. Write this overview with creativity and flair, ensuring it reads like a human-written text and incorporates keywords in a natural way for SEO optimization. Generate HTML-formatted content using only
, and
tags. Exclude headings and other HTML tags. DO NOT include a ‘Conclusion’ section! Here is the product description: ‘Bybit CEO Ben Zhou said Thursday that his exchange will not list the Pi Network’s PI token, which was controversially released on Thursday, citing a Chinese police warning from 2023 that alleged the project was a scam targeting elderly people, leaking their personal information and leading to the loss of their pensions. “There are multiple other reports out there questioning the project legitimacy,” Zhou posted on X. “Yes, I still think you are a scam, and no, Bybit will not list scam.” The Pi Network didn’t respond to CoinDesk’s request for comments. The token went live alongside the project’s mainnet release on Thursday. Users who “mined” tokens by clicking their smartphone screens once a day were finally able to transfer and sell tokens. Zhou, however, found himself in the middle of a separate issue on Friday, with his exchange Bybit, which was hacked by North Korea’s Lazarus Group for $1.5 billion. The PI token debuted on OKX at $0.67, rose as high as $2 and then slumped 65% and is currently around $0.69.One issue that raised concerns was a marketing tactic that rewarded users who recruited other users. Each time a user persuaded someone else to sign up using their code, the first person’s “mining” rewards were increased. The idea had some drawing comparisons to the 2017 Ponzi scheme, Bitconnect.”Pi Network is the biggest ponzi [scheme],” X user CryptoBeast alleged, posting to their 656K followers. The project also offers users the option of locking their tokens for as long as three years. In return, they are promised increased rewards. The same technique was at the heart of the Hex project, whose founder, Richard Schueler, known online as Richard Heart, is a fugitive sought by the U.S. Securities and Exchange Commission (SEC) for, among other things, defrauding his investors.The token has a market cap of $4.18 billion based on a circulating supply of $6.33 billion. However, its inflationary nature means the maximum supply is 100 billion, giving a fully diluted value (FDV) at a staggering $67 billion, assuming it holds the current price. At launch, FDV rose as high as $200 billion, almost double that of Solana.Some exchanges have been undeterred by the concerns raised. OKX, Bitget and Gate have racked up a total of $620 million in trading volume for PI trading pairs between them, according to CoinMarketCap.Read more: Pi Network’s Token Debuts at $195B Value Despite Minimal Liquidity'”].67 on the exchange OKX, seeing a dramatic rise to before plummeting by over 65%, now trading around [openai_gpt model=”gpt-4o-mini” prompt=”You are a news reporter covering the cryptocurrency industry. Given the article description, provide an introductory overview of the news in an informative style. AVOID using overly technical terms or details! DO NOT offer recomendations to buy or sell any assets! Analyze from a fact-based perspective and bring in additional research when claims are made. Write this overview with creativity and flair, ensuring it reads like a human-written text and incorporates keywords in a natural way for SEO optimization. Generate HTML-formatted content using only
, and
tags. Exclude headings and other HTML tags. DO NOT include a ‘Conclusion’ section! Here is the product description: ‘Bybit CEO Ben Zhou said Thursday that his exchange will not list the Pi Network’s PI token, which was controversially released on Thursday, citing a Chinese police warning from 2023 that alleged the project was a scam targeting elderly people, leaking their personal information and leading to the loss of their pensions. “There are multiple other reports out there questioning the project legitimacy,” Zhou posted on X. “Yes, I still think you are a scam, and no, Bybit will not list scam.” The Pi Network didn’t respond to CoinDesk’s request for comments. The token went live alongside the project’s mainnet release on Thursday. Users who “mined” tokens by clicking their smartphone screens once a day were finally able to transfer and sell tokens. Zhou, however, found himself in the middle of a separate issue on Friday, with his exchange Bybit, which was hacked by North Korea’s Lazarus Group for $1.5 billion. The PI token debuted on OKX at $0.67, rose as high as $2 and then slumped 65% and is currently around $0.69.One issue that raised concerns was a marketing tactic that rewarded users who recruited other users. Each time a user persuaded someone else to sign up using their code, the first person’s “mining” rewards were increased. The idea had some drawing comparisons to the 2017 Ponzi scheme, Bitconnect.”Pi Network is the biggest ponzi [scheme],” X user CryptoBeast alleged, posting to their 656K followers. The project also offers users the option of locking their tokens for as long as three years. In return, they are promised increased rewards. The same technique was at the heart of the Hex project, whose founder, Richard Schueler, known online as Richard Heart, is a fugitive sought by the U.S. Securities and Exchange Commission (SEC) for, among other things, defrauding his investors.The token has a market cap of $4.18 billion based on a circulating supply of $6.33 billion. However, its inflationary nature means the maximum supply is 100 billion, giving a fully diluted value (FDV) at a staggering $67 billion, assuming it holds the current price. At launch, FDV rose as high as $200 billion, almost double that of Solana.Some exchanges have been undeterred by the concerns raised. OKX, Bitget and Gate have racked up a total of $620 million in trading volume for PI trading pairs between them, according to CoinMarketCap.Read more: Pi Network’s Token Debuts at $195B Value Despite Minimal Liquidity'”].69. This volatile beginning raises eyebrows, particularly regarding the network’s incentivization strategies that reward users for recruiting new participants—practices that are reminiscent of past Ponzi schemes like Bitconnect.
“Pi Network is the biggest ponzi [scheme],” claimed a user known as CryptoBeast, amassing significant traction among their followers.
Another point of contention is the project’s offer for users to lock their tokens for extended periods, promising greater rewards in return. This tactic parallels that of the Hex project, which has come under scrutiny due to its founder being a fugitive sought by U.S. regulators. As the market cap for the PI token soared to around .18 billion, the concerns about its inflationary structure loomed large. With a circulating supply of 6.33 billion and a maximum supply capped at 100 billion, the fully diluted value could reach a staggering billion, challenging even established players in the market.
Despite these warnings and allegations, other exchanges like OKX, Bitget, and Gate have seen considerable trading volumes, with a combined total of 0 million for PI trading pairs. This raises questions about the future of the token and its place in the rapidly evolving cryptocurrency ecosystem, highlighting the fine line between opportunity and risk.
Bybit CEO Rejects PI Token Due to Scam Allegations
The recent developments surrounding the Pi Network’s PI token highlight significant risks and implications for investors, especially in the volatile cryptocurrency market. Here are the key points:
- Bybit’s Refusal to List PI Token: Ben Zhou, CEO of Bybit, stated the exchange will not list the PI token due to serious concerns raised by Chinese police about its legitimacy, referring to it as a scam.
- Targeting Vulnerable Populations: The allegations suggest that the PI Network project has targeted elderly individuals, putting their personal information at risk and endangering their pensions.
- Market Debut and Volatility:
- The PI token debuted on OKX at [openai_gpt model=”gpt-4o-mini” prompt=”Based on the article content, generate a list of key points in an HTML format using Bold, UL/OL. Focus solely on the most important aspects, and describe how they might be related or impact the readers life if at all. Begin with a title using
HTML tag in this format: ‘
Title Goes Here
‘. Use only
,
,
,
- , and
tags. DO NOT include a ‘Conclusion’ section! Here is the topic description: ‘Bybit CEO Ben Zhou said Thursday that his exchange will not list the Pi Network’s PI token, which was controversially released on Thursday, citing a Chinese police warning from 2023 that alleged the project was a scam targeting elderly people, leaking their personal information and leading to the loss of their pensions. “There are multiple other reports out there questioning the project legitimacy,” Zhou posted on X. “Yes, I still think you are a scam, and no, Bybit will not list scam.” The Pi Network didn’t respond to CoinDesk’s request for comments. The token went live alongside the project’s mainnet release on Thursday. Users who “mined” tokens by clicking their smartphone screens once a day were finally able to transfer and sell tokens. Zhou, however, found himself in the middle of a separate issue on Friday, with his exchange Bybit, which was hacked by North Korea’s Lazarus Group for $1.5 billion. The PI token debuted on OKX at $0.67, rose as high as $2 and then slumped 65% and is currently around $0.69.One issue that raised concerns was a marketing tactic that rewarded users who recruited other users. Each time a user persuaded someone else to sign up using their code, the first person’s “mining” rewards were increased. The idea had some drawing comparisons to the 2017 Ponzi scheme, Bitconnect.”Pi Network is the biggest ponzi [scheme],” X user CryptoBeast alleged, posting to their 656K followers. The project also offers users the option of locking their tokens for as long as three years. In return, they are promised increased rewards. The same technique was at the heart of the Hex project, whose founder, Richard Schueler, known online as Richard Heart, is a fugitive sought by the U.S. Securities and Exchange Commission (SEC) for, among other things, defrauding his investors.The token has a market cap of $4.18 billion based on a circulating supply of $6.33 billion. However, its inflationary nature means the maximum supply is 100 billion, giving a fully diluted value (FDV) at a staggering $67 billion, assuming it holds the current price. At launch, FDV rose as high as $200 billion, almost double that of Solana.Some exchanges have been undeterred by the concerns raised. OKX, Bitget and Gate have racked up a total of $620 million in trading volume for PI trading pairs between them, according to CoinMarketCap.Read more: Pi Network’s Token Debuts at $195B Value Despite Minimal Liquidity'”].67, peaked at , and subsequently lost 65% of its value, now stabilizing around [openai_gpt model=”gpt-4o-mini” prompt=”Based on the article content, generate a list of key points in an HTML format using Bold, UL/OL. Focus solely on the most important aspects, and describe how they might be related or impact the readers life if at all. Begin with a title using
HTML tag in this format: ‘
Title Goes Here
‘. Use only
,
,
,
- , and
tags. DO NOT include a ‘Conclusion’ section! Here is the topic description: ‘Bybit CEO Ben Zhou said Thursday that his exchange will not list the Pi Network’s PI token, which was controversially released on Thursday, citing a Chinese police warning from 2023 that alleged the project was a scam targeting elderly people, leaking their personal information and leading to the loss of their pensions. “There are multiple other reports out there questioning the project legitimacy,” Zhou posted on X. “Yes, I still think you are a scam, and no, Bybit will not list scam.” The Pi Network didn’t respond to CoinDesk’s request for comments. The token went live alongside the project’s mainnet release on Thursday. Users who “mined” tokens by clicking their smartphone screens once a day were finally able to transfer and sell tokens. Zhou, however, found himself in the middle of a separate issue on Friday, with his exchange Bybit, which was hacked by North Korea’s Lazarus Group for $1.5 billion. The PI token debuted on OKX at $0.67, rose as high as $2 and then slumped 65% and is currently around $0.69.One issue that raised concerns was a marketing tactic that rewarded users who recruited other users. Each time a user persuaded someone else to sign up using their code, the first person’s “mining” rewards were increased. The idea had some drawing comparisons to the 2017 Ponzi scheme, Bitconnect.”Pi Network is the biggest ponzi [scheme],” X user CryptoBeast alleged, posting to their 656K followers. The project also offers users the option of locking their tokens for as long as three years. In return, they are promised increased rewards. The same technique was at the heart of the Hex project, whose founder, Richard Schueler, known online as Richard Heart, is a fugitive sought by the U.S. Securities and Exchange Commission (SEC) for, among other things, defrauding his investors.The token has a market cap of $4.18 billion based on a circulating supply of $6.33 billion. However, its inflationary nature means the maximum supply is 100 billion, giving a fully diluted value (FDV) at a staggering $67 billion, assuming it holds the current price. At launch, FDV rose as high as $200 billion, almost double that of Solana.Some exchanges have been undeterred by the concerns raised. OKX, Bitget and Gate have racked up a total of $620 million in trading volume for PI trading pairs between them, according to CoinMarketCap.Read more: Pi Network’s Token Debuts at $195B Value Despite Minimal Liquidity'”].69.
- Its inflated market cap has raised concerns, peaking at 0 billion, underlining the issues of speculative trading.
- Questionable Marketing Strategies:
- The project incentivizes users to recruit others, reminiscent of the Ponzi scheme model seen in other controversial projects like Bitconnect.
- Users can lock their tokens for up to three years for promised higher rewards, similar to tactics used by discredited projects.
- Impact of Exchange Security Breaches: Bybit’s recent hack by North Korea’s Lazarus Group for .5 billion raises further concerns regarding the security and reliability of trading platforms.
- Consumer Awareness is Crucial: The warnings from financial authorities and the actions of responsible exchanges serve as a reminder for potential investors to conduct thorough research before engaging with new and unproven projects.
“Yes, I still think you are a scam, and no, Bybit will not list scams.” – Ben Zhou, CEO of Bybit
Bybit’s Firm Stance on Pi Network: A Cautionary Tale in Crypto Trading
The recent announcement from Bybit’s CEO Ben Zhou about the exchange’s decision not to list the controversial Pi Network’s PI token showcases a significant approach toward risk management in the volatile world of cryptocurrency trading. Bybit’s rejection stems from an alarming Chinese police warning about potential scams targeting vulnerable populations, particularly the elderly. This forthright stance not only emphasizes the importance of due diligence in listing projects but also highlights a competitive advantage for Bybit as a platform that prioritizes user safety over rapid expansion.
In stark contrast, other exchanges such as OKX, Bitget, and Gate have shown a willingness to embrace the PI token, which saw an initial trading frenzy that pushed its value wildly before a significant drop. While these exchanges are cashing in on the tumultuous market sentiment, they could face backlash from users should the project fail to deliver on its promises or, worse, if it turns out to be a scam. The risky reward of listing such volatile and questionable tokens can foster distrust among customers, particularly investors more inclined toward a protective approach, like those who turn to Bybit due to its more cautious policies.
The implications of this situation reverberate throughout the crypto landscape. Bybit’s refusal to engage with the PI token could bolster its brand reputation as a trustworthy exchange, attracting cautious investors who might prefer security over speculation. On the other hand, the willingness of other exchanges to list the token may appeal to those who thrive on speculative trading, potentially creating a rift within investor demographics. However, this lure could simultaneously create problems if it leads to significant financial losses for clients, fueling regulatory scrutiny or angering the community.
Moreover, the element of recruitment within the PI token’s ecosystem has drawn unsettling comparisons to notorious Ponzi schemes like Bitconnect, raising flags for regulatory bodies and potential investors alike. As Zhou pointed out, the marketing strategies employed, which incentivize users to recruit others, mirror tactics that have previously failed miserably and led to legal consequences for founders involved in fraudulent schemes. This can serve as a double-edged sword for exchanges; while they may temporarily benefit from trading volume, any future legal action against the project could tarnish their reputations.
The market cap of the Pi token, which soared to an astonishing .18 billion despite its questionable legitimacy, also reflects the inflate-and-fall dynamics often seen with new crypto projects. Promising high rewards for locking tokens and the inflated FDV values may add to the allure but also highlight the risks inherent in speculative trading environments, benefiting seasoned investors who can navigate these waters while potentially harming newcomers ill-prepared for the volatility.
In a climate where trust and security are paramount, exchanges like Bybit that maintain a clear stance against dubious projects may find themselves at a competitive advantage, while those that overlook due diligence could face reputational fallout in the long term.
