CyberCapital’s Justin Bons Slams Pi Network as a Scam

Pi Network is faced with a meticulous exam after Justin Bons, founder of Cybercapital, marked the project a “scam”.

Good has raised concerns about technology, the project’s business model and the Tokenomics, arguing that they are deeply imperfect and potentially harmful to investors.

Is Pi Network a scam? Justin good thinking

In a series of messages on X (formerly Twitter), good has stressed several problems with the network. He suggested that unlike its pretensions of decentralization, the PI network remains highly centralized.

“Pi is fully authorized (centralized) and everything requires KYC, even simple transactions! Pi is an investment scam; it is so bad,” he wrote.

Good also criticized the launch of the Mainnet of five years, qualifying the promises of innovation and decentralization of the network. In particular, one of the main claims of the executive was that the main PI Network technology was copied from Stellar (XLM).

Despite this, he argued that the absence of a virtual machine (VM) of Turing-Turing limits the potential for decentralized financing (DEFI), which makes it a “pipeream”. In addition, he explained that it makes the network neither scalable nor programmable.

Well also drew attention to the network’s reference program, which he compared to a several level marketing program (MLM). He argued that this system generates unnecessary costs for the network without providing real advantages to users.

Composing his concerns more, good has highlighted a Ponzi type mechanism in the “mining” process of the PI network. He revealed that the locking period benefits the initiates by inflating the price of the token, allowing the first investors to leave the profits.

Transparency, or absence, was another important problem that good has reported. He criticized the PI network not to reveal the initiate tokens allowances despite the application of your client’s procedures (KYC). He noted that initiates could control up to 20% of the network’s offer, which contradicts the project’s equity allegations.

“Pi made the top 20 is an embarrassment for our industry,” concluded good.

Previously, the CEO of Bybit, Ben Zhou, had shared similar concerns, calling Pi a scam and describing it as “more dangerous than coins”.

Pi Coin (PI) Will he be listed on Binance?

Meanwhile, the latest wave of criticism comes in the middle of growing dissatisfaction among the pioneers towards the Binance. On March 19, the exchange revealed its first vote to enroll projects. The list included parts even associated with the former CEO and Mubarak token (Mubarak), among others.

However, despite the PI Coin (PI) receiving an 86% vote in favor, the community expressed its frustration concerning Binance’s failure to list it.

“Stop acting as an exchange of third -party waste and make your promises before starting the next vote. I do not know if CZ would have included like that if it was still in Binance, it would not be proud of your behavior,” wrote a user on X.

The community even went so far as to give Binance a 1 star note on the Google Play Store. However, this could have aggravated the PI prospects rather than improving them.

“Do not try to hurry to register your medal by spreading the Fud or negative comments on Binance, or you will be put on black list,” noted Binance.

The double blows of the criticisms of the good and the Binance snobs coincided with a devastating crisis of the PI market. The price of the token has dropped below $ 1.0 today for the first time since the end of February.

During the last day, PI decreased by 20.1%, the weekly losses extended to 48.7%. At the time of the press, Pi Coin was negotiated at $ 0.91. Its classification also took a blow, sliding in 27th place on Coingecko, a significant drop in its previous position.