Pi network is a developer platform that allows users to mine the platform's native token, PI, using their mobile devices.
Recently, Huobi and XT.com announced the listing of Pi Network's native token.
However, the Pi Network warned users not to trade PI on exchanges until the platform's core team issued an official statement.
on key social media platforms like Twitter and Reddit, because of the upcoming mainnet launch and exchange listings of the platforms' native token. But is it really Pi from Pi Network?
As per recent reports, the Pi token was recently listed on the Huobi, a Seychelles-based crypto exchange. In addition, the social crypto exchange XT.com also announced its plan to list the PI/USDT trading pair in the innovation zone.
However, several crypto community members and experts are labeling the Pi network's listing on these platforms as a scam. They believe the action was carried out in order to manipulate the price of the Pi token. So, is it really a fake listing or just an IOU listing? Let’s discuss this in deep.
The Pi network is a cryptocurrency and developer platform that allows users to mine the platform's native token, PI, using their mobile devices. As per recent reports, every Pi Network user currently holds 1000-2000 Pi tokens.
This indicates that the listing of the Pi token on the above-mentioned exchanges was positive news for the Pi holders. Though the official announcement by Huobi meant something else. It mentioned that the platform will not offer deposit and withdrawal services for the Pi token as part of the listing. The same assertions were also made by the Pi Network’s official team. The team tweeted,
As a result, millions of Pi token holders will be unable to sell them by depositing them on the Huobi marketplace. Reports say, there is no Pi blockchain or network through which users can move assets to the exchange. Therefore, the Pi Network Huobi exchange listing is a derivative or artificial form of the non-existent coin. Users can speculate on the price of Pi while the exchange makes millions of dollars in trading fees from inexperienced amateur investors.
Since users will deposit USDT or other crypto assets to trade Pi Network on Huobi, the listed derivative is just an I-owe-you (IOU) token that will allow users to speculate on the Pi price. Users can also manage their digital assets on swissmoney and make their finances smooth and seamless.
As per recent media outlets reports, both platforms asserted that the deposits and withdrawals of the Pi token will only be made available after the official mainnet launch of the Pi Network.
An IOU, which stands for "I owe you," is a document that openly states and acknowledges that there is an amount of money owed between two parties. IOUs are crucial documents in financial agreements because they explain the debt relationship between two entities, whether they are people or businesses.
The concept initially surfaced in the crypto industry during the ETH merge. At the time, ETHW, or wrapped ethereum, was also listed as an IOU on multiple crypto exchanges. But the community widely recognized the move as the initial listing of the token. Meanwhile, an IOU crypto token serves the same purpose as an IOU notice - it serves to represent a debt relationship between two parties.
In the cryptocurrency sector, the concept of IOU is not widely recognized. As a result, exchanges like Huobi and XT.com are making significant profits by not giving warnings to the traders about the unofficial listing of the Pi Network.
Through this article, CoinGabbar, a leading information and research crypto marketplace, aims to enlighten the crypto community about the ongoing scams carried out by several platforms. So, please do your homework before investing in any cryptocurrency project.
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