Warning Against Fraudulent Pi Tokens on DEXs
The Pi Network team has issued a caution to users regarding the circulation of fraudulent Pi tokens on decentralized exchanges (DEXs).
In an official statement released on Feb. 20, the team made it clear that all Pi trading pairs currently available on DEXs are unauthorized and could potentially be part of scams aimed at deceiving investors.
According to the team, Pi Network has not given approval for any token listings on DEXs. They emphasized that any Pi token found on DEXs at this time is considered illegitimate. Users are strongly advised to steer clear of these tokens as trading them may result in financial losses.
The team stated:
“Pi Network strongly recommends that you refrain from participating in any current DEX trading pairs. If you choose to proceed, despite this warning, you run the risk of being defrauded, receiving fake Pi, and losing your money.”
Instead, Pi Network suggests trading only on centralized exchanges that have successfully completed its Know-Your-Business (KYB) verification process. The approved platforms identified by the network include OKX, Bitget, Gate.io, and Pionex.
Emergence of Fake Pi Tokens and Scam Allegations
The warning from Pi Network comes in response to the rise of fake Pi tokens on various DEXs and meme token launchpads like Pump.fun.
Recently, a Pi-branded meme token launched on Pump.fun experienced a significant drop in market value after the official Pi token was introduced. Data from Pump.fun shows that its market capitalization plummeted from $5 million to approximately $112,142.
Simultaneously, the genuine Pi token also faced a sharp decline in price. Since its official launch on Feb. 20, its value has decreased by over 60%. According to CryptoSlate, PI is currently trading at around $0.66, a considerable drop from its $2 peak at launch.
This substantial decrease is believed to be driven by substantial sell pressure from long-term miners who have been accumulating the asset for more than six years.
Additionally, Bybit CEO Ben Zhou has publicly voiced his concerns about the Pi project, labeling it a scam and urging the team to address any controversies surrounding it. Zhou stated:
“Bybit had made no listing request to PI, and the claim that PI refused Bybit listing or Bybit did not pass some sort of KYB of PI is completely nonsense. If the project is legitimate and straightforward, then you should come forth and address these reports so everyone can understand, but instead, you choose to make up stories and launch these unfounded attacks.”
