China’s financial authorities are again sounding alarms over illicit fundraising schemes tied to digital assets — and this time, Pi Coin finds itself at the center of the discussion.
Instead of attacking cryptocurrencies as a concept, regulators framed their concern around how certain tokens are being used: not to innovate, but to lure inexperienced participants into fraud. In their view, the biggest danger is not technology — it’s exploitation.
Key Takeaways
China issued a warning over digital assets being used in scams targeting inexperienced users.
Pi Coin was highlighted due to its large user base and weak fundamentals.
Regulators labelled Pi an “air coin,” citing slow development and opaque progress.
The warning aligns with China’s crackdown on speculative crypto activity while allowing controlled blockchain use.
Officials singled out Pi Coin as an example of a token wrapped in hype but short on verifiable delivery.
The project’s long-running closed network, slow rollout and opaque progress have earned it a domestic nickname: an “air coin,” meaning a digital asset that appears to exist but has little demonstrated value behind it.
This reputation has made Pi a convenient vehicle for scam operators promising mining payouts, pre-launch access and guaranteed profits — all tactics common in multi-level marketing and pyramid sales pitches.
Popularity Becomes a Liability
What sets Pi apart is its reach. Analysts note that it amassed millions of everyday users in China — far more than Bitcoin or Ethereum could, given the restrictions on mainstream crypto trading.
That scale, paradoxically, is what makes it attractive to fraudsters: large communities of non-technical users are easier to manipulate than the smaller, more sophisticated groups around other assets.
Regulators argue that because Pi circulates heavily among laypeople, it has become one of the most exploited tokens in illegal fundraising narratives, which is why it earned explicit mention in the warning.
Crackdown Continues While Blockchain Pilots Move Ahead
The advisory fits Beijing’s broader dual-track approach: clamp down on speculative crypto behaviour while still nurturing controlled blockchain trials. Officials want digital innovation, but without the contagion effects that unchecked token speculation could unleash.
Their latest message is less about stopping crypto entirely and more about policing claims that promise wealth where none exists — a signal to investors that participation without caution remains risky.
