Huobi Lists Pi Coin (PI): Why You Should Be Careful

Huobi, the exchange run by Justin Sun, has listed PI coin. The listing price was $0.01. One hour after listing, it hit a high of $62. In terms of gain alone, that's an enormous jump of a whopping 600,000%. It has since dropped "slightly" (-200,000%) and is now trading at around $40. But there's a problem.

The Problem with Huobi's PI Listing

The problem is that Pi coin itself currently can't be deposited or withdrawn! So where on earth did Huobi get Pi coins to list?

First, for those who know nothing about Pi coin, here's a quick explanation. Pi coin is a coin you mine for free on your phone. It's built on a multi-level referral structure. In other words, it's a classic multi-level scheme where inviting someone as your referral earns you a share of the coins they mine. As for mining, you just wake up the next day and your wallet says the coins have been mined and added. In reality, it isn't mining like Bitcoin at all; it's just a number going up on the screen.

The funny thing is that the Pi coin community is organized quite solidly (?), and older folks in their 40s, 50s and 60s have been bartering with Pi coin, dreaming of the bright new future Pi coin would bring them. Then, at last, rumors of an exchange listing started going around. And finally, on December 29, 2022, came the historic moment when PI coin was listed on the XT exchange and the Huobi exchange.

This is where the key point comes in. Neither exchange holds a single Pi coin! As I mentioned earlier, that's because Pi coin itself can't be withdrawn externally at all. So how is trading even happening?

Why You Should Be Careful with PI Coin on Exchanges

This is exactly why you need to be careful with Pi coin trading right now. In the end, the two exchanges, XT and Huobi, have listed a coin they don't even have, and they're pushing the price up with bots doing wash trading. Naturally, PI deposits and withdrawals are blocked.

Their strategy is simple. They mindlessly pump the price on dismal trading volume, then lure in retail investors. Then, the moment someone buys a few million or tens of millions of won worth, they'll slam the price down without fail. After all, the exchange is monitoring every single user. And when that person sells at a loss, they'll scoop up those coins and push the price back up again.

Justin's Huobi. I think this behavior is a case that clearly shows it's in the same league as the XT exchange. Just in case, let me say this: it's best to skip things like this entirely without even looking at them. You might think "maybe this time," but it will end just as you'd expect.