Pi Network's $3.5B Daily Volume: Wash Trading or Genuine?

Moonrock Capital CEO Simon Dedic Alleges Wash Trading in Pi Network

Simon Dedic, the CEO of Moonrock Capital, has recently expressed serious concerns about the legitimacy of Pi Network's trading activities. He joins a growing list of industry leaders who have raised questions about the cryptocurrency project's operational model. Despite amassing up to 65 million users since its inception in 2018-2019, Pi Network has faced criticism from prominent figures in the crypto space.

In a detailed post on a social media platform, Dedic highlighted several red flags associated with Pi Network. His primary allegation centers on the authenticity of Pi Network's trading volume. He noted, "My thoughts: This is just a giant Ponzi that faked it till they made it." Dedic pointed out that, despite claims of a $26 billion fully diluted valuation (FDV) and a 60% token float, the project appears to lack substantial involvement from the Web3 community. Instead, it has cultivated a following predominantly among non-crypto users, many of whom may not fully grasp the project's purpose.

A significant portion of Pi’s reported $3.5 billion daily trading volume is concentrated on exchanges such as OKX, Bitget, and Gate.io. Dedic suggests that this volume is predominantly the result of wash trading in Pi Network. Wash trading is a manipulative practice where traders buy and sell the same asset to create misleading market activity.

Further, the Moonrock Capital executive references a Chinese police report from 2023, shared by Bybit CEO Ben Zhou, which labeled Pi Network as a scam project targeting the elderly. This association raises questions about the project’s credibility and the integrity of its reported metrics.

While some analysts defend Pi Network, arguing that it offers a unique approach to cryptocurrency adoption, others remain skeptical. Businesses in Florida have begun accepting Pi Coin for transactions, indicating a degree of real-world utility. However, the token's listing on exchanges like OKX has also provided liquidity for traders, although its price declined after listing.

The Binance exchange is still considering listing the Pi token. The exchange initiated a community vote to determine whether Pi should be listed on its platform, which sparked a mix of anticipation and controversy within the crypto space. The voting process concludes today, and only a fraction of Binance’s extensive user base has participated. If