Authorities in Vietnam have launched an investigation into the Pi network and cryptocurrency. The mining-motivated cryptocurrency network has grown exponentially in the country as it offers an ‘easy way’ to mine and generate tokens, but the authorities are not convinced.
Vietnam’s Cyber Security and High-Tech Crime Prevention Department launched its investigation into Pi on June 30.
Pi network concerns
Department head Le Xuanminh expressed concern that the Pi network model is “too complex and unmanaged recently”. “No other online business can generate such high levels of income,” he added. according to the local media.
He also warned that cryptocurrency promoters lure people into “multimarketing-like business models.”
According to VN Express, the crypto network lacks the necessary level of transparency for a blockchain project. Furthermore, it may “be used for nefarious purposes such as fraud or data collection”.
The Pi Network was launched in March 2019 and has grown in popularity in Vietnam and India during the 2021 bull market. This is because PI tokens can be “mined” on mobile, eliminating the costs of purchasing expensive cryptocurrency mining hardware.
However, the network does not appear to have any purpose other than to serve as a medium for the exchange of PI tokens.
However, co-founder Dr. Nicholas Kokkalis holds a PhD from Stanford University. and instructor of the first decentralized applications class at Stanford University. Stanford Professor Dr. Chengdu Fan, the other co-founder, has a Ph.D. in the anthropological sciences.
According to its website, the Pi Network has 47 million “participating members”. Moreover, it claims a team of 35 core members at its headquarters in Silicon Valley and across the globe.
Cryptocurrencies are so popular in Vietnam that Chainalysis named it the best country to adopt in 2022. However, crypto assets are not legal tender in the country.
PI Token List Disaster
For most people, especially those who are not familiar with cryptocurrency or blockchain, the Pi network seems like a great way to earn some extra money. All you have to do is click on a button every day and earn yourself some free tokens.
Many see this as a way to “get into the ground floor”, similar to bitcoin’s recovery in the early years. But that may not be the case at all. As the saying goes, “If you don’t pay for the product, you are the product.”
At the end of 2022, Pi Network supporters rejoiced at the news that Huobi had listed PI, and the price quickly shot up to $230. However, this turned out to be a farce, and the Pi network team had to explain that this was an unauthorized list.
To this day, no exchanges have listed PI. The team even sent out a notification telling users,
“Pi is currently in the closed network and has not been approved by the Pi Network for listing on any exchange or for trading.”
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