Launched in 2019, the Pi network gained significant traction in Vietnam in 2021 by enabling users to earn tokens via their mobile phones, removing the need for expensive mining equipment. Nonetheless, skeptics argue that the network’s transparency is questionable and raises concerns about potential misuse for fraudulent purposes or unauthorized data collection.
Against this background, the Department of Cybersecurity and High-Tech Crime Prevention in Vietnam has taken the initiative to investigate the token, according to the declaration of regulatory authorities
Pi Network’s Trust and Personal Data
The trust of many people in Pi has raised concerns among experts in Ho Chi Minh City, Vietnam, as some individuals believe that there are no negative consequences of joining the network.
Related Reading: Introducing Pi Network – Making Cryptocurrency Accessible to the Masses
However, Le Xuan Minh, the head of the Cyber Security and High-Tech Crime Department, said users should be aware of the potential risks of compromising their personal information, VN Express, a local newspaper, reported.
The head of department discussed this issue during a recent meeting in Hanoi, emphasizing the complex and unregulated nature of cryptocurrency operations; specifically, they mention the significant online income generated by such models.
Minh expressed concern that individuals would be pressured to participate in business models similar to multi-level marketing schemes by cryptocurrency promoters. And he emphasized the importance of approaching such activities with caution.
Related Reading: Still Holding Your Pi Network Tokens? A Huobi listing may be coming soon
Vietnamese authorities have also reportedly issued warnings to individuals regarding the risks of investing in cryptocurrency schemes that promise unusually high returns or adopt multi-level marketing structures.
The Pi token currently has no 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, was instructed to stop accepting tokens as a payment method.
One participant shared his experiences and said:
Some items were exchanged by consensus, but the values were relatively small. Although people valued the token at hundreds of thousands of dollars, there were no trades exceeding a few tens of dollars. In addition, participants had to pay nearly one million dong for participation fees and uniforms.
Pi’s past encounter and recent development
On December 29, 2022, the cryptocurrency exchange Huobi Global made an announcement about the listing of the token. However, Pi Network, in response, warned 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 approved an IPO.
The crypto total market cap is currently around $1.152 trillion | Source: TradingView
Over the past year, the Pi Network has achieved several notable 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 of other popular cryptocurrencies, improving their overall experience within the network.
Featured image from iStock, chart from TradingView.com