Researcher Justin Bons has publicly called Pi Network a “straight-up scam,” focusing attention on its mobile “mining” model, token distribution, and the degree of control held by the core team. The remarks quickly intensified debate around the project. In a thread on X, Bons argued that Pi relies on heavy marketing and questionable token economics, prompting fresh scrutiny of its decentralization claims and its long-delayed development timeline.
Mobile “mining” and mandatory KYC draw criticism
Bons argued that Pi’s mobile mining feature does not actually contribute to blockchain consensus, even though the project presents it as real mining to attract users. He wrote, “WARNING: PI is a straight-up scam! Offering an ‘MLM’ based ‘mining’ scheme on mobile is a gimmick.” In his view, the setup functions more as a recruitment mechanism than as technical infrastructure for the network.
He also pointed to Pi’s mandatory KYC requirement for users seeking full participation. Bons said that requirement clashes with the core idea behind decentralized cryptocurrencies, which are generally designed to operate without strict identity checks. That issue forms a central part of his broader criticism of the project’s structure.
Technology compared to Stellar, with limits for smart contracts
Bons also questioned Pi’s technical foundations. He said the network remains under strong control from the core team and noted that the mainnet launch came about five years later than planned. That delay, in his assessment, has added to doubts over whether the project has delivered meaningful technical progress.
According to Bons, Pi’s technology closely resembles the technology used by Stellar and is not compatible with a Turing-complete virtual machine. In practical terms, that would make it difficult to build smart contracts or DeFi applications on the platform. He also criticized the project’s documentation as unclear and poorly organized, saying that weakens confidence among developers and researchers.
Referral rewards, long lockups, and insider advantage
Bons separately criticized Pi’s referral structure, saying it resembles a multi-level marketing model. Under his description, users receive about 25% of the mining rewards generated by people they invite. He argued that this form of mining does not add real value to the network and mainly serves to pull more participants into the system.
He also warned about a feature that lets users lock up tokens for several years in exchange for a higher mining rate. Bons compared that design to HEX, saying long lockups keep users tied to the platform while early insiders stand to benefit if prices rise.
On token distribution, Bons claimed the project team holds around 20% of total supply and controls future mining rewards. He also said validators remain closely tied to project leadership, raising the possibility that governance decisions could be blocked or influenced when needed. Those points have reinforced criticism that Pi is far more centralized than it claims.
Regulatory alerts and claims of insider selling
Warnings around Pi have extended beyond researchers. The report said Chinese authorities reportedly described the project as a pyramid scheme as early as 2023, while Vietnamese authorities have raised concerns about its activities and related data risks. Bybit founder Ben Zhou has also warned about the project’s outreach to vulnerable investors.
Bons further referred to an alleged episode of insider selling during a 2025 price spike. He said the token climbed from $0.66 to $1.60 before falling sharply, adding force to accusations of insider dumping. Despite repeated criticism, Pi remains one of the most visible names in crypto. Bons summed up his view with another sharp line: “That PI is still in the top 50 is an embarrassment to our industry.”