Is Pi Network a Scam? All You Need Know Amid Latest Pi Coin Allegations

Key Insights:

• Pi Network faces allegations of deceptive practices and lack of transparency in its operations.
• Over 12 million Pi tokens were dumped, causing a 50% price crash in hours.
• Bybit CEO confirmed Pi Coin is not listed and publicly called the project a scam.

A new wave of concern has emerged in the cryptocurrency space after crypto researcher “Atlas” alleged that Pi Network is involved in deceptive practices. In a series of detailed posts shared on X (formerly Twitter), Atlas accused the Pi Coin team of orchestrating what could be one of the largest crypto-related frauds of 2025.

According to him, the project lacks transparency, real user activity, and proper technological infrastructure, raising questions about its credibility.

These claims have gained widespread attention after a rapid sell-off of Pi tokens reportedly caused the token’s price to fall by over 50% in just a few hours. This event led to renewed scrutiny of the project’s background, structure, and real-world usage.

Pi Network Activity and Platform Structure Raise Concerns

Atlas stated that over 12 million Pi tokens were dumped in a short period, causing major price volatility. He claimed this dump was not just speculative behavior but possibly linked to a coordinated selloff involving key wallets.

A user named Moon Jeff (@CRYPTOAD00) also raised alarms on social platform X, writing:

This large concentration of tokens in a single wallet has fueled concerns of centralized control over the token supply. Though there is no official confirmation regarding the ownership of the wallet, the unusual accumulation has drawn attention from several blockchain analysts.

Additionally, Atlas questioned the project’s user base and technology. While the Pi network boasts over 60 million users, analysts point out a drastic difference in the number of active wallets. Most importantly, critics say, most of the users were added through a multi-level referral model and not because of organic adoption or true technical interest.

Started in 2019, the project became a way for users to ‘mine’ Pi using their phone. This method was attracting millions of users across countries where traditional mining is not possible due to hardware or energy limitations. But multiple experts continue to insist that there is not actually any mining occurring. What they are operating is a user acquisition platform, rather than a blockchain network.

Past Privacy Breaches and Lack of Technical Disclosure

This is not the first time Pi Network has faced questions about its operations. In 2021, a leak involving 17GB of user data from Vietnam led to privacy concerns. Around the same time, regulators in China warned the public about Pi’s data collection methods. They described the app as potentially harmful, especially to elderly users, citing risks to their financial information and personal identity.

Bybit CEO Ben Zhou also criticized the project. In a public statement, he said,

“Yes, I still think you are a scam, and no, Bybit will not list scam.”

Zhou clarified that Bybit had never attempted to list Pi and accused the Pi team of spreading misinformation.

Another concern among observers is the lack of open-source code and the absence of working decentralized apps (dApps). While many crypto projects operate transparently with community input and public code, Pi Network has yet to release its core codebase. Atlas and others argue that without this, users cannot verify how the network works or whether the coins they are mining have actual value.

During the Consensus 2025 conference, Pi Network founder Dr. Nicolas Kokkalis made an appearance that many believed would bring new announcements. Instead, his keynote focused on general ideas involving AI and blockchain, without offering any updates on development timelines.

Kokkalis later commented online, saying Pi Network operates “in a uniquely challenging space.” He added that they have never asked users for direct monetary investment.

Pi Token Unlocks and Trading Volume Trends

Despite the controversies, interest is high in owning Pi Coin. As of now, there are over 5 billion Pi tokens in circulation. That itself has a current estimated market value of over $5.29 billion.

On-chain data indicates that a large portion of tokens will be unlocked over the coming months.

Just in May alone in 2025, over 125,125 million Pi tokens were released into circulation, accounting for approximately $92 million. The number will increase in June and July. After which the token unlock amounts are expected to decrease steadily from August.

After that, around only 132 million tokens are expected to be unlocked in August 2025, with the numbers getting even lower in the following months.

The falling token unlocks could mean less selling pressure in the market. By slowing down the supply, it might create the environment that could help Pi Network’s price stabilization or growth as long as new announcements and community participation in development remain strong.