Blockchain

Is PI Network a scam providing no value to users? Possibly yes

So much misinformation on this article, I’d like to address it. 1) “The app does not provide any utility to its users beyond functionality like in-app messaging. Most users hold on to it with the hope that they will sometimes convert their virtual coins to actual value” – Does not provide utility? ~300 Pioneers have the IAT (In-App Transfer) enabled and have the capability of transferring their earned Pi. Those pioneers have HELP facilitate thousands of transactions all over the world. – Also, have you even opened the app and navigated it? There is a hackathon going on, there have been projects being developed in the brainstorm app including: Pi Workforce: https://youtu.be/_VXQ7MlroxM Pi Network NFTs (Uneat): https://youtu.be/ZRmVsWw8Hjc Piketplace: https://youtu.be/rvQtp9hgaOg just to name a few…

2) “The app works like a direct selling or affiliate marketing system, promising future rewards to users for bringing in new users. Some users put in additional time and effort to attract new users, such as numerous users adding their codes as comments to this article. We find it similar to Multi Level Marketing since it includes direct selling and provides increased potential benefits to early users (i.e. earlier users mine at an increased rate), however affiliate or direct selling are possibly better analogies.” – Pi Network is not an MLM, as an MLM required “Multi”-Level. The referral system only rewards you for the people that used your invite code and not the people they invited, which makes it SINGLE level. Multi-level is when you benefit from your invites and the people they invited.

3) “Users are putting value into the app. There are hundreds of posts online saying PI Network can not be a scam because users do not put any money it. Users’ time and data are valuable to those users and they are spending these on the app. For more, you can see our analysis of the app’s privacy policy, its data collections, permissions and the 3rd party software included in the app. We find it unlikely for the app to create value in the future unlike its claims: The app creates limited value. Users create no value except for providing their information to the mobile app, viewing ads or messaging other users. The value of these activities is unlikely to generate significant wealth for the large user base. Some of its current practices are also used in scams: Founders are already benefitting from the app. They launched optional video ads at launch to monetize the active user base. The app also has a KYC process of collecting passport information. Having a verified audience through a KYC process would increase advertising revenues. We are not against ad funded businesses, we are also such a business, we provide insights and our audience views ads on our pages. However, when businesses that are expected to launch additional features (e.g. launch coin on exchanges), start monetizing their audience, that can create a conflict of interest.” Their marketing emphasizes the academic credentials of their users. Very similarly, a blockchain scam without blockchain infrastructure, OneCoin, relied on the McKinsey experience of its founder in its marketing.”

– There were no ads in the first 1 year and 3 months, at the time there were only around 1-2 million pioneers and the server cost was around $30,000/monthly that they paid for in that year and 3 months. They asked the community through a survey how they can help cover those costs. The community voted for Ads which is why it was implemented. – Pi Network currently uses a TRUSTED third party KYC provider called “Yoti.” Pi does not collect or store any of the KYC documents provided. The only thing Yoti sends to Pi Network is whether the user passed KYC or not.

Yoti is also used by banks and the UK government to verify identities. It is well known and well trusted. As they follow top industry standards for information security. Several times a year external audits are carried out to them to check that their security arrangements are compliant. These auditors follow internationally recognised standards for best practice in security, these are known as ISO 27001 and SOC2.

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