Key Takeaways
- Pi network’s OKX listing comes with a slew of KYC fraud accusations.
- Several users revealed their KYC was pending for years.
- Others questioned OKX for listing a token with no blockchain or trusted public presence.
Pi Network, a decentralized mining project that has yet to launch its mainnet, is all set to be listed on the global crypto exchange platform OKX.
However, just weeks before its launch, traders and existing PI users raised concerns about know-your-customer (KYC) verification.
Pi Network is a social cryptocurrency and smart contracts platform designed for everyday people. Pi introduced mobile mining, making cryptocurrency mining accessible to the masses.
However, the project has been controversial mainly because of the delays in the mainnet launch and its referral and token lockup schemes.
Pi Eyes Mainstream Debut, Users Say KYC Pending For Years
Pi Network announced that they have completed a significant milestone by verifying 10 million users, a crucial step toward going live.
Just days after the KYC milestone announcement, several traders on social media, especially the early users, claimed their KYC had been pending for years despite submitting all required documents.
One user wrote:
“I’ve been a Pi Network member since 2020 and submitted my KYC with my passport and face verification, yet it remains in tentative approval. Please approve my KYC or allow resubmission so I can contribute to the Pi ecosystem.“
Another user explained the loophole, claiming several users have mined Pi tokens for years in hopes of a mainnet launch. Now that the mainnet launch nears, the platform has imposed KYC requirements, which they can’t pass by the launch, thus making their tokens of no use.
The first grace period for KYC verification was delayed from Nov. 31 to Dec. 31. It was postponed a second time from December 2024 to Jan. 31, stating that millions of users had not migrated their tokens to the mainnet.
Now, users have another 15 days to verify, but the real problem is the approval process.
A few others were surprised that a decentralized mining project that has portrayed itself as bestowed by decentralization is listed on a centralized exchange.
Pi Network’s Accused of MLM Scheme
Pi Network is among the controversial crypto projects that have been under development for nearly six years. After years of delay, the platform announced it would launch its mainnet on Feb.20.
Market pundits claim the project has most of its tokens distributed among its top founders, raising centralization and MLM concerns.
Pi Network’s Chinese links and referral programs are often compared to a “pyramid scheme” or multi-level marketing scheme, in which users are rewarded for bringing in more people and receiving Pi tokens in return. Many have called it the largest “MLM scam in Asia.”
A few users also questioned OKX’s listing of a project without a mainnet, a public blockchain explorer, and a history of unauthorized exchange listings and delays.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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