Pi Network Pushes Back Against MLM and Scam Accusations

Pi Network is pushing back against accusations labeling the project as a scam and a multi-level marketing (MLM) scheme. A company spokesperson dismissed these claims, stating they stem from misunderstandings about how Pi Network and its referral system function.

Industry Leaders Challenge Pi Network

The controversy started when Bybit CEO Ben Zhou publicly called Pi Network a scam, making it clear that Bybit would not list the PI token. Shortly after, Cyber Capital founder Justin Bons made similar remarks, describing Pi Network’s referral system as resembling a multi-level marketing scheme.

These statements affected both the project’s reputation and the token’s market performance. Following Pi Network’s mainnet launch on February 20, the PI token initially surged to $2.99 but has since dropped to approximately $0.77, based on CoinMarketCap data today.

Pi Network Defends Its Referral Program

Pi Network strongly refutes claims that its referral structure resembles an MLM model. The company clarified that no financial investment is required to participate, and users mine PI tokens for free through its mobile app.

The referral system, according to Pi Network, operates on a single-level basis. If one user refers another, only those two benefit from mining together. No rewards extend beyond this direct connection, which Pi Network argues separates its system from traditional MLM structures where commissions flow through multiple levels.

The project’s referral bonus offers a 25% mining reward boost, but it only applies when both the referrer and the new user mine simultaneously. Pi Network likens this to common referral incentives used by tech and finance companies to encourage user engagement.

What do we think? Well, as reported previously, we believe it remains a crypto illusion that will eventually move all the way back to zero.