Pi Network’s Open Network Launch Raises Legal Concerns
PI Network continues to attract people’s attention after its open network transition to open network on February 20, 2025.
While the upcoming open network launch of PI Network represents an important milestone for the platform, it also brings important discussions about the nature of its operations to the forefront.
PI Network’s transition launch raises legal issues
The platform already has more than 19 million pioneers of identity verification. It also exceeded 10 million mainnet migration targets to 11.4 million. As beincrypto ReportThe Trail Blazers (users) of PI Network will be able to interact with other compliant networks and systems after startup.
However, as the release date approaches, industry experts have expressed concern about the legitimacy and potential legal implications of the platform. Famous blockchain journalist Colin Wu, popular for his insights into the Chinese crypto market, warned of the operations of PI Network.
In a post on X (Twitter), Wu warned individuals about risks associated with the platform. He cites areas with strict regulations for the pyramid scheme.
“About PI, if you still want to return to the mainland occasionally, I recommend you not to report or touch it.” warn.
Wu also emphasized Legal impactThis suggests that this participation may even indirectly lead to significant personal and family consequences.
Other industry figures responded to Wu’s concerns. These include Ab Kuai.Dong, founder of A Yuan Ci project. Experts describe the PI network as “the largest pyramid scheme in the Chinese-speaking world.”
He highlighted the platform’s low entry barrier, where users can mine PI coins directly through their phones. Similarly, its recommended systeminspire others to increase mining speed, Gaining attention.
“Invite others to increase mining speed. Mining rewards will gradually decrease as the number of users increases. As the narrative, PI coins can be used for actual consumption. PI holders believe that its future market value can be consistent with Bitcoin, ” kuai.dong Explained.
Crypto market commentator Cryptovo V also acknowledged the pyramid-like marketing structure of PI Network. However, analysts stopped tagging scam.
“PI is local marketing and pyramid schemes, but it’s not a scam,” Crypto v Challenged.
Experts share PI network analysis
Crypto V is still referring to it in his position analyze The origin and mechanics of PI networks. Launched on March 14, 2019, PI Network is an application-based platform that allows users to Mine cryptocurrency On their mobile devices.
The mining process involves users clicking a button every 24 hours without financial costs. The platform uses multi-level Marketing Strategyencourage users to invite others to join, Increase its mining rate. Since the growth of the platform relies heavily on user recruitment, this structure is compared with the pyramid scheme.
“The team did not hesitate to tell the community: PI has no monetary value. It is not worth it just because it is called a coin. PI only has value when the community is larger and has more users,” Crypto v explain.
This analysis further highlights the main audience of the PI network. They live in areas such as Southeast Asia, South Asia, Nigeria and marginalized communities Europe and the United States. For many in these areas, the platform provides an accessible entry point for the crypto market, especially given the minimum technical requirements and zero financial investment.
Potential users and investors should exercise caution when PI networks are prepared for open network releases. The growth of the platform and its unique approach undeniably made it the subject of conspiracy.
However, its legitimacy is still questionable because it operates centrally. There is an increasing focus on its operating model and potential legal consequences that cannot be ignored.
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