Pi Network Crypto Project Comes Under Investigation in Vietnam
Date: 2023-07-05 Author: Karina Ziganova Categories: BUSINESS
Police in several localities in Vietnam are conducting a special investigation into activities related to the Pi-network
"Operations with cryptocurrencies built on the Pi model are extremely complex and unmanageable," said the head of the department, Le Xuan Minh, at a meeting in Hanoi. "No other business generates such high revenues online."
Pi-network appeared in 2019. In Vietnam, the peak of popularity of this project came in 2021. Unlike many popular cryptocurrencies, the project can mine Pi tokens directly on your mobile phone without investing in expensive equipment.
To receive coins, users must log in and click on the button every day. The Pi-network does not use any consensus algorithm, and in order to increase the speed of production, you need to attract new participants to the project.
This scheme is reminiscent of the network marketing model. Along with abnormally high profits, it is considered a sign of a potentially fraudulent scheme.
However, the project lacks transparency, so there are risks that it could be used for fraud or data collection purposes.
Cryptocurrency Status in Vietnam
Cryptocurrencies are not legal tender in Vietnam. Trading and payments in cryptocurrency face a fine of up to 100 million VND ($4240). However, according to Chainalysis, in 2022, this country came out on top in terms of cryptocurrency adoption.
What is the Pi Network project and what made it famous?
According to the information on the website, the network is actively used by 47 million people - about as many live in Spain. The core team consists of 35 people, and the project is headquartered in Silicon Valley.
At the end of 2022, supporters of the project rejoiced at the news that Huobi had listed PI. The value of the token soared to $230, but it soon became clear that the listing was unauthorized.
Currently, the Pi token is not present on any exchange.
