Moonrock Capital's Simon Dedic Raises Concerns Over Pi Network's Legitimacy

Simon Dedic, the CEO of Moonrock Capital, has recently sounded the alarm regarding the trading activities of Pi Network, expressing apprehensions about its operational integrity.

His comments add to the ongoing scrutiny from various leaders within the cryptocurrency domain. Pi Network claims to have accumulated an impressive 65 million users since its launch in 2018-2019.

Concerns from the Moonrock Capital CEO

In a detailed message shared on social media platform X (formerly known as Twitter), Dedic pointed out multiple red flags related to Pi Network, primarily questioning the authenticity of its trading volume.

“My thoughts: This is just a giant Ponzi that faked it till they made it,” Dedic noted.

Dedic highlighted that while Pi Network boasts a $26 billion fully diluted valuation and a 60% token float, it seems to lack significant engagement from the Web3 community. Instead, the project has attracted many users who may not fully understand its intent.

Much of Pi's reportedly $3.5 billion daily trading volume appears to be concentrated on exchanges like OKX, Bitget, and Gate.io. Dedic suggests that this volume may largely stem from wash trading, a tactic where traders buy and sell the same asset to generate misleading activity in the market.

Additionally, Dedic referenced a 2023 police report from China, initially shared by Bybit's CEO Ben Zhou, which categorized Pi Network as a scam targeting the elderly community. This troubling label raises important questions about the project's credibility and the veracity of its reported statistics.

“It checks some red flags for sure, and I am not going to touch it. May miss some profits, but better safe than sorry,” echoed Swizzy, a Web3 strategist.

This isn't the first time Pi Network has faced criticism; two years prior, Vietnam's Cybercrime Unit began investigating the project due to ongoing concerns surrounding its operations. Recently, legal experts have proliferated warnings concerning the risks involved with Pi Network, and analysts have debated the wisdom of listing Pi on prominent exchanges.

Despite these criticisms, some analysts defend Pi Network, claiming that it adopts a unique strategy for fostering cryptocurrency adoption. Moreover, businesses in Florida have begun accepting Pi Coin for transactions, hinting at some level of real-world applicability.

The token's presence on exchanges like OKX has also provided liquidity for traders, even though its price experienced a decline post-listing.

Currently, Binance is contemplating listing the Pi token, having initiated a community vote on the matter. This has led to a blend of anticipation and skepticism throughout the crypto community.

As the voting wraps up today, only a small fraction of Binance's user base has participated. While some investors believe a Binance listing could validate Pi Network, others remain doubtful.

If Binance opts to include Pi, analysts speculate that the token's price may temporarily rise, with predictions suggesting it could reach between $5 and $10 by April.

“Everything dumped, the market is bearish, Pi about to hit $2, about to be listed on Binance. By the end of April, Pi will trade above $5. Maybe at $10,” shared a crypto investor on X.