In recent days, two major platforms in the crypto universe, Coinbase and Pi Network, have faced intense criticism and questioning from the community. While Coinbase deals with the fallout from an internal data leak, Pi Network faces distrust after announcing a $100 million fund for startups. Let's get into the details.
Coinbase: Internal Leak and Risks for Users
Coinbase, one of the largest cryptocurrency exchanges in the world, is under heavy scrutiny following an internal data leak exposing sensitive user information. According to reports, a dishonest employee sold customer data on the dark web, including identity documents and addresses, increasing the risks of phishing scams.
The breach is said to have occurred in January 2025, but was only recently revealed, generating outrage among users. Many claim to have been victims of sophisticated social engineering attacks, where criminals posed as Coinbase representatives to steal funds.
The company estimates that less than 1% of monthly active users were affected, but analysts warn that the impact could be greater than reported. Additionally, Coinbase refused to pay a $20 million ransom demanded by the criminals and instead offered that same amount as a reward for information leading to the arrest of those responsible.
The situation raises concerns about Coinbase's internal security, especially since the company acts as a custodian of Bitcoin and Ethereum ETFs in the U.S., which could pose a systemic risk to the market.
Pi Network: $100 Million Fund and Community Outrage
Meanwhile, Pi Network is also at the center of a controversy. The project team announced the creation of Pi Network Ventures, a $100 million fund to support startups developing within its ecosystem. However, the initiative has generated strong disapproval from the community, known as Pioneers, who expected more concrete advances after six years of waiting.
Critics point out that the Pi Network team has yet to deliver the 100 promised DApps, and now intends to use part of the fund to develop them. Furthermore, there are questions about the project's financial transparency, including the fate of the millions raised from advertising revenue over the years.
The negative reaction was reflected in the market, with the price of Pi Coin falling below $1 after the announcement. Some analysts labeled the Pi Network's approach as a major embarrassment, especially since the application process for the fund was done through a Google form, which undermines the initiative's credibility.
Despite the criticisms, some community members defend the initiative, arguing that the fund could boost the growth of the ecosystem and strengthen the adoption of the PI token in the real world.
Conclusion
The recent events involving Coinbase and Pi Network highlight critical challenges faced by major players in the crypto sector. While Coinbase needs to bolster its internal security and regain user trust, Pi Network must deal with community frustration and prove that its $100 million fund will bring real benefits.
The cryptocurrency market continues to evolve, but episodes like these show that transparency and security are fundamental to maintaining the trust of investors and users.
What do you think about these controversies? Do you think Coinbase and Pi Network will be able to regain public trust?