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Bybit CEO Ben Zhou stated Thursday that his trade is not going to record the Pi Community’s PI token, which was once controversially launched on Thursday, bringing up a Chinese language police caution from 2023 that alleged the challenge was once a rip-off concentrated on aged folks, leaking their non-public knowledge and resulting in the lack of their pensions.
“There are a couple of different stories available in the market wondering the challenge legitimacy,” Zhou posted on X. “Sure, I nonetheless assume you’re a rip-off, and no, Bybit is not going to record rip-off.”
1. Here’s a reliable police caution of $Pi from Chinese language police again in 2023 caution to the general public that it’s a rip-off focused against aged people https://t.co/LaGJqXSOXR which leaks their non-public information and lack of their pension. There are a couple of different stories available in the market… https://t.co/gkEu2wZwfo
— Ben Zhou (@benbybit) February 20, 2025
The Pi Community did not reply to CoinDesk’s request for feedback.
The token went reside along the challenge’s mainnet free up on Thursday. Customers who “mined” tokens through clicking their smartphone displays as soon as an afternoon have been in spite of everything in a position to switch and promote tokens.
Zhou, on the other hand, discovered himself in the midst of a separate factor on Friday, along with his trade Bybit, which was once hacked through North Korea’s Lazarus Team for $1.5 billion.
The PI token debuted on OKX at $0.67, rose as top as $2 after which slumped 65% and is lately round $0.69.
One factor that raised considerations was once a advertising tactic that rewarded customers who recruited different customers. Every time a consumer persuaded any individual else to enroll the usage of their code, the primary individual’s “mining” rewards have been higher. The speculation had some drawing comparisons to the 2017 Ponzi scheme, Bitconnect.
“Pi Community is the largest ponzi (scheme),” X consumer CryptoBeast alleged, posting to their 656K fans.
The challenge additionally gives customers the choice of locking their tokens for so long as 3 years. In go back, they’re promised higher rewards. The similar methodology was once on the center of the Hex challenge, whose founder, Richard Schueler, recognized on-line as Richard Middle, is a fugitive sought through the U.S. Securities and Change Fee (SEC) for, amongst different issues, defrauding his traders.
The token has a marketplace cap of $4.18 billion according to a circulating provide of $6.33 billion. Alternatively, its inflationary nature method the utmost provide is 100 billion, giving a completely diluted price (FDV) at a staggering $67 billion, assuming it holds the present value. At release, FDV rose as top as $200 billion, virtually double that of Solana.
Some exchanges had been undeterred through the troubles raised. OKX, Bitget and Gate have racked up a complete of $620 million in buying and selling quantity for PI buying and selling pairs between them, in step with CoinMarketCap.
Learn extra: Pi Community’s Token Debuts at $195B Worth Regardless of Minimum Liquidity
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