The Pi Network, launched in 2019, gained significant traction in Vietnam in 2021 by enabling users to earn the tokens through their mobile phones, removing the requirement for costly mining equipment. Nonetheless, skeptics contend that the network’s transparency is questionable and raises concerns about potential misuse for fraudulent purposes or unauthorized data collection.
Given this, the Department of Cybersecurity and High-Tech Crime Prevention in Vietnam has taken the initiative to investigate the token, as declared by regulatory authorities
Pi Network’s Trust And Personal Data
The trust placed by many people in Pi has raised concerns among experts in Ho Chi Minh City of Vietnam, as some individuals believe there are no negative consequences to joining the network.
However, Le Xuan Minh, the head of the Department of Cybersecurity and High-Tech Crime, stated that users should be aware of the potential risks of compromising their personal information, VN Express, a local publication, reported.
The department head discussed this issue during a recent meeting in Hanoi, emphasizing the complex and unregulated nature of cryptocurrency operations; specifically mentioning the significant online income generated by such models.
Minh expressed worry about individuals being pressured into participating in business models that resemble multi-level marketing schemes by cryptocurrency promoters. And he stressed the importance of approaching such activities with caution.
Vietnamese authorities have also reportedly issued warnings to individuals regarding the risks associated with investing in cryptocurrency schemes that promise unusually high returns or adopt multi-level marketing structures.
The Pi token currently does not possess a fixed value. However, there have been reports of individuals engaging in ‘consensus’ transactions, where they negotiate the price among themselves. To circumvent regulations, their users often refer to these transactions as ‘exchanges’ rather than ‘payments.’
In March, a hotel in Phan Thiet City, located in Binh Thuan province, received instructions to cease accepting the token as a form of payment.
One attendee shared their experience, stating:
Some goods were exchanged through consensus, but the values were relatively small. Although people were valuing the token at hundreds of thousands of dollars, there were no trades exceeding a few tens of dollars. Additionally, participants had to pay nearly one million dong for participation fees and uniforms.
Pi’s Previous Encounter and Recent Developments
On December 29, 2022, cryptocurrency exchange Huobi Global made an announcement regarding the listing of the token. However, Pi Network, in response, cautioned against the listing of its token on Huobi and other exchanges. In a tweet, they clarified that as of December 29, 2022, they had not authorized any exchange listing.
The crypto total market cap is currently around $1.152 trillion | Source: TradingView
Over the past year, the Pi Network has achieved several noteworthy milestones. In September 2022, they introduced Pi Connect, a feature designed to address existing limitations of the Pi Network cryptocurrency.
Pi Connect aims to provide users with information about the token price and conversion rates for other popular cryptocurrencies, enhancing their overall experience within the network.
Featured image from iStock, charts from TradingView.com