On February 20, Pi Network project's Pi coin was listed on a number of international cryptocurrency exchanges. Up to now, this coin is being traded at a price ranging from 2.7 to 2.9 USD. According to data from Coinmarketcap, as of February 27, Pi's capitalization has reached nearly 275 billion USD.

Pinetwork
A user's Pi wallet. Photo: HG

The listing of Pi has excited the community of miners of this virtual currency, and many investors have made transactions to buy this coin on cryptocurrency exchanges, with the expectation that the price will continue to increase in the near future.

However, taking advantage of the community's excitement when Pi was listed on the exchange, many fake Pi coins appeared on the market.

Specifically, many exchanges are not listed on the Pi coin list, but also trade this coin. In addition, on some exchanges, there are also many different Pi coins that are not issued by the Pi Network team.

Besides, there are also many fake applications that imitate the Pi Network model, calling on users to download and participate in transactions.

According to Mr. Tran Xuan Tien, General Secretary of the Ho Chi Minh City Blockchain Association (HBA), Pi Network's success in building a community in recent times may be copied by fraudulent models. Accordingly, instead of being free, users may be led to deposit money into these models, thereby creating financial risks. There have been a number of fake tokens issued on both decentralized and centralized exchanges.

According to Mr. Tien, if the Pi Network team does not have a specific announcement, users may mistakenly trade these fake tokens. Similarly, applications containing malicious code will also use a similar model to Pi Network to invite users to download and install, causing their devices to be hacked. This is the most common form of fraud in recent times.

The Pi Network development team also issued a warning shortly after that, the Pi trading pairs listed on all DEXs (decentralized exchanges) are all fake Pi.

The group recommends that people do not participate in any Pi trading pairs on DEXs at the moment, as you may receive fake Pi and lose your money.

Up to now, real Pi is only listed on a few exchanges as the development team has announced in the past.

Regarding fake Pi on exchanges, a representative of a Blockchain company in Vietnam said that not only Pi but also fake virtual currencies exist on almost any cryptocurrency exchange.

When these coins are newly listed on the exchange, it is entirely possible for investors to buy fake virtual currencies. Many investors have lost large sums of money, from tens to hundreds of millions of dong.

It is very difficult to detect fake virtual currencies, the only way is for investors to buy a little to test, because there is currently no other way to verify.

Therefore, to avoid losing money, users should slow down and carefully check the newly listed virtual currencies before investing.

In Vietnam, there are currently no regulations on cryptocurrency transactions. The State Bank has also repeatedly warned that owning, buying, selling, and using Bitcoin and other similar cryptocurrencies as an asset class poses many risks to people and is not protected by law.
Pi coin price goes against the trend of cryptocurrency, reaching 3 USD

Pi coin price goes against the trend of cryptocurrency, reaching 3 USD

While the cryptocurrency market "collapsed", the price of Pi suddenly increased sharply and reached 3 USD in the early morning of February 27.
Using Pi to trade is illegal

Using Pi to trade is illegal

Currently, the law does not have specific regulations on investors owning Pi coins. However, using Pi coins to conduct transactions, buy and sell goods or services may be considered a violation of the law.
Pi Network is a project lacking transparency

Pi Network is a project lacking transparency

Chairman of the Vietnam Blockchain Alliance Dang Minh Tuan said that Pi Network does not have official information about the development team, is not transparent about the source code and this is a model that is not true to the nature of Blockchain, which is decentralized.