Pi Network (Pi Coin) is under intense fire after Justin Bons, founder of CyberCapital, publicly called the project a scam. His explosive statements triggered renewed doubts about Pi’s legitimacy, igniting community backlash and a steep market decline.

Bons Alleges Pi Network is Centralized and Misleading

Justin Bons took to X (formerly Twitter) to denounce Pi Network’s decentralization claims. He argued that the project operates under full permission and central control. According to him, even basic transactions require KYC, which contradicts decentralization principles.

He stated that Pi Network is not only misleading but potentially harmful to investors. He labeled the project an “investment scam” and accused it of lacking transparency and fairness.

Pi Network Allegedly Copied Stellar’s Codebase

Bons further claimed that Pi Network’s technology was copied from Stellar (XLM ($0.24)). He criticized the lack of a Turing-complete virtual machine. Without it, he said, Pi cannot support programmable smart contracts or real decentralized finance applications.

This, he explained, severely limits Pi’s utility and future potential in the blockchain ecosystem. He added that Pi’s innovation claims are exaggerated and do not reflect real technological advancement.

Referral System Resembles MLM, Says Bons

Bons also targeted Pi’s referral-based mining mechanism. He said it closely resembles a Multi-Level Marketing scheme rather than a true crypto-mining system. He claimed this model inflates growth metrics without delivering real value to users.

Moreover, he explained that the lockup period in Pi’s mining process benefits insiders. These early participants can profit by exiting at inflated token prices, which he likened to a Ponzi structure.

Transparency Concerns Deepen Investor Worries

Bons didn’t stop at tech flaws or business models. He also pointed to a lack of transparency within Pi’s tokenomics. Although Pi enforces KYC for users, it has not revealed insider token allocations.

He suggested insiders might control up to 20% of the token supply. If true, this undermines the project’s fairness and decentralization narrative. He said such secrecy contradicts the values Pi claims to uphold.

Binance Refuses to List Pi Coin Despite 86% Community Support

While Pi battles accusations from Bons, it’s also facing frustration from its own community. On March 19, Binance launched its “Vote to List” initiative, allowing users to vote for new listings.

Pi Coin received 86% support from the community. Yet, Binance excluded it from the first batch of selected tokens. This decision triggered outrage among Pi supporters, many of whom voiced their anger on X.

Some users questioned Binance’s integrity and accused it of abandoning community-driven listing principles. One user even compared Binance to a “third-rate junk exchange” and questioned what former CEO CZ would have done differently.

Binance Responds to Backlash and Threatens Blacklist

In response, Binance issued a firm warning to the Pi community. The exchange said it would not tolerate pressure tactics or misinformation campaigns. It warned that spreading fear or falsehoods could result in blacklisting.

Rather than helping, the negative attention may have further harmed Pi’s standing with the exchange. Tensions between Binance and Pi supporters continue to grow, complicating the listing prospects further.

Pi Coin Drops to $0.91 as Market Reacts Sharply

As these issues escalated, Pi Coin’s price plummeted below $1. It fell to $0.91—the lowest level since February. Within 24 hours, the token dropped by 20.1%. Over the past week, it has lost a staggering 48.7% of its value.

Pi Coin (PI) Price Action. Source| CoinGecko

The decline also impacted Pi’s market position. The coin dropped to 27th on CoinGecko, down from a much higher spot earlier this month. These losses reflect shaken investor confidence and increasing skepticism around the project’s future.

Community Confidence Weakens Amid Dual Blow

Together, Justin Bons’ allegations and Binance’s rejection have dealt a major blow to Pi Network. What once appeared to be a promising ecosystem now struggles to defend its credibility. Community frustration, centralization concerns, and lack of clear progress raise major red flags.

Read Also: Crypto Scammers Strike Again! Fake TradingView Premium Software Wipes Out Millions

As Pi continues to lose ground, both in price and public trust, many now wonder if recovery is even possible. Unless Pi addresses these concerns transparently and takes decisive action, the pressure will likely continue to mount.

The post Pi Coin Tanks 48.7% in a Week as Scam Allegations Surface – $0.91 and Falling appeared first on FXcrypto News.