Pi Network's Open Network Launch Sparks Legal Warnings

Pi Network's Open Network Launch Sparks Legal Warnings from Experts

The Pi Network, a cryptocurrency platform, has garnered significant attention following its transition from the Enclosed Mainnet phase to an Open Network on February 20, 2025. This milestone represents a major step for the platform, but it also brings critical discussions about its operations to the forefront.

The platform already boasts over 19 million identity-verified Pioneers and has surpassed its 10 million Mainnet migrations goal, reaching 10.14 million. Following the imminent launch, Pi Network's Pioneers (users) will be able to interact with other compliant networks and systems.

However, as the launch date approaches, industry experts are voicing concerns about the platform's legitimacy and potential legal implications. Colin Wu, a renowned blockchain journalist, warned users about the risks associated with the platform. In a post on X (Twitter), Wu cautioned individuals about the risks associated with the platform, citing regions with stringent regulations against pyramid schemes.

Wu also emphasized the severity of legal repercussions, stating that involvement, even indirectly, could lead to significant personal and familial consequences. Other industry figures echoed Wu's apprehensions. AB Kuai.Dong, founder of a metaverse project, described the Pi Network as "the largest pyramid scheme in the Chinese-speaking world." He highlighted the platform's low entry barrier and referral system, which incentivizes inviting others to increase mining speed.

Crypto V, a crypto market commentator, acknowledged Pi Network's pyramid-like marketing structure but stopped short of labeling it a scam. Still following his stance, Crypto V referred to a previous analysis of Pi Network's origins and mechanics. Launched on March 14, 2019, Pi Network is an app-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 cost. The platform employs a multi-level marketing strategy, encouraging users to invite others to join, which increases their mining rate. This structure has led to comparisons with pyramid schemes, as the platform's growth heavily relies on user recruitment.

As Pi Network prepares for its Open Network launch, potential users and investors should exercise caution. The platform's growth and unique approach have undeniably made it a subject of intrigue. However, its legitimacy remains questionable, as it operates centrally