Pi Network aims to make crypto mining easy for everyone. The developers say users can mine Pi Coin on their phones. No special hardware is needed. However, there is a lot of controversy surrounding Pi Network. Some people think Pi Coin is a new and vital cryptocurrency. Others believe it has no real value and is just a scheme.
Many entrepreneurs and investors are asking: can Pi Network be trusted? Is Pi Coin a legitimate cryptocurrency, or is it a scam? Will the coin have real value?
This article explains the Pi Network and how it works. We will examine its benefits and drawbacks. You will also learn why some people doubt the project and what might happen next.
What are Pi Network and Pi Coin?
Pi Network is a crypto project. Users can earn Pi Coin through a mobile app. The developers aim to create a digital currency that is easy to use and accessible to everyone. Their goal is to make it decentralized, so millions of people globally can use it.
Pi Coin is different from Bitcoin and Ethereum. It doesn’t need powerful hardware for mining. Users tap a button in the app to mine it. The project has a unique algorithm. It lets users mine coins without using a lot of energy.
How is Pi Network different from other cryptocurrencies?
The main feature of the Pi Network is how accessible it is. Mining Bitcoin requires powerful graphics cards or special devices. Pi Network users can mine with a regular smartphone. This makes it accessible to more people.
Another distinction is the coin distribution model. In regular blockchains, miners confirm transactions. Pi Network works differently. Users in trusted circles confirm each other's transactions. The developers claim that this makes the network more resistant to fraud.
How does the mobile mining of Pi Coin work?
Mining in the Pi Network doesn't require computational power. The user only has to launch the app and click a button to start mining. Users need to confirm their participation every 24 hours. If they don't, their coin collection will stop.
The mining model is based on social activity. The more people are in the user's trusted circle, the higher the mining speed. However, at the moment, Pi Coin is stored only within the Pi Network ecosystem. It cannot be withdrawn to an external cryptocurrency wallet or exchanged for fiat money. Full functionality of the coin is expected to become available only after the launch of the Pi Network mainnet.
Development of the Project and Current Status
History of Establishment and Development Team
The Pi Network project was founded in 2019 by a group of scientists from Stanford University. The key figures were Dr. Nicolas Kokkalis, Dr. Chendihao Fan, and Vincent McPhillips. They created a cryptocurrency that can be mined on mobile phones. It uses very little energy.
The team wants to make digital assets accessible to everyone. They aim to remove technical obstacles. The project is designed to be simple for users. This has allowed Pi Network to attract a large number of users worldwide.
Key Development Stages: Launch, Testnet, Mainnet Announcements
Since its launch, the project has gone through several key stages:
- 2019 – Launch of the mobile app and the start of Pi Coin mining. Users began earning coins for daily activity in the app.
- 2020 – Growth in the number of users and the network's increasing use. The developers announced the transition to the testnet (Testnet).
- 2021-2022 – The testnet was launched so users could explore the project. However, they couldn’t withdraw any funds. It was for testing and interaction only.
- 2023 – Present day. There have been announcements about the launch of the Pi Network Mainnet. However, access is still limited. Not everyone can use it yet. Many users are waiting for the ability to withdraw coins or use them for purchases.
How is the Pi Network Ecosystem Developing?
The project team is building an ecosystem of apps and services. This will let users spend Pi Coin. The goal is to support the coin's use. Marketplaces, exchange services, and other tools are already being tested within the network. However, the full use of the coin depends on the official launch of the mainnet.
Pi Coin is not traded on major exchanges, and its value remains uncertain. The developers are working to attract more partners. However, businesses and the crypto community still don't fully accept the coin, and its use is limited.
Main Complaints About the Project
Lack of Listing on Major Crypto Exchanges
Despite having many users, Pi Coin is not listed on major crypto exchanges. This creates uncertainty for investors and users, as the coin lacks a real market price. Currently, Pi Coin can only be sold outside of exchanges, making it difficult to trade. As a result, it is not a liquid asset.
Closed Source Code and Lack of Transparency
Pi Network says it is creating a decentralized network. The project’s code is still closed, raising questions about its decentralization. Without access to the code, independent developers can't verify the system’s security or reliability. There’s also no clear information on how tokens are distributed or how the project is managed, leading people to doubt its true decentralization.
Problems with Withdrawals and the Real Value of the Coin
Pi Coin can’t be exchanged for cash or other cryptocurrencies. There are no official ways to do this. Users can store their coins in a wallet but cannot use them outside of the Pi Network ecosystem. This makes the coin virtually useless beyond the project itself. Pi Coin has no real liquidity and can’t be used for transactions. This makes people question its value in the long run. Pi Coin is not on major crypto exchanges yet. This limits entrepreneurs and businesses who want to use it for payments. They face challenges because of this.
Referral System Usage: Community Growth or Pyramid Scheme?
The project encourages users to invite others through a referral system. New users need to invite others to earn more rewards, which increases their earnings. This system is similar to multi-level marketing (MLM), leading to concerns that Pi Network focuses more on gaining new users than creating real value, raising doubts about its true purpose.
These factors lead many to question the reliability of the project and its future.
Arguments in Defense of Pi Network
Why Has the Project Not Been Listed on Exchanges?
The Pi Network developers say the coin isn’t listed yet. They say this is part of their plan to gradually launch the mainnet. Listing the coin too soon could lead to speculation, with most users trying to sell their Pi Coins right away, causing the value to drop. Instead, the team has created a closed mainnet. Users can complete KYC verification and move their coins to a new wallet. However, external trading is not allowed.
Clarifying the Mainnet Mechanics and Launch Phases
The project says it will launch the network in several steps. There are three main stages in the process. These stages are key to the launch.
1. Testnet
This phase began in 2020. During the testnet, developers tested the blockchain's functionality, and transactions, and fixed possible issues. At this stage, users could not freely move or use Pi Coins. The main objective was to prepare the infrastructure for the full launch in the future.
2. Closed Mainnet
Launched at the end of 2021, this phase allows users to move their mined coins to a main wallet. However, the network is still closed to external trading platforms.
- To transfer coins, users must undergo KYC verification.
- Coins in the mobile app can’t be used for transactions yet. They will be available once the main network is fully launched.
- During the closed mainnet, developers are testing smart contracts. They are also working on creating decentralized applications (dApps).
3. Open Mainnet
This is the last stage. After this, Pi Network will become a completely decentralized cryptocurrency system. Once the network is fully switched, users can move Pi Coin between wallets. They will also be able to use it for payments and trade it on exchanges. The developers say the open mainnet will launch once many users complete KYC and enough services support payments with Pi Coin.
How realistic are the developers' claims about the future utility of Pi Coin?
The developers say the main goal of the project is to create an ecosystem. In this ecosystem, users will be able to spend Pi Coin on products and services. Internal payments are already being tested within the community. Some vendors are also starting to accept Pi Coin as payment. However, widespread adoption has not yet occurred.
The team says they are talking to different partners. They want to integrate Pi Coin into the global payment system. There is no confirmed information about partnerships with major companies. The timeline for the open mainnet launch is still unclear.
Who accepts Pi Coin and can it be exchanged?
Is Pi Coin used for real payments?
Currently, Pi Coin is not widely used for real payments in major stores or services. The project is still in development and is building its ecosystem. Some users and small businesses within the Pi Network are starting to accept Pi Coin for products or services. However, this is only within the network. It’s not widely used outside the project yet. This is more of an experimental phase aimed at building confidence in the use of cryptocurrency in real-world conditions.
Which companies and communities accept Pi Coin?
Some small startups, new and established online stores, and a few Pi Network members are accepting Pi Coin. However, there are not many such partners yet, and most activity is limited to non-commercial transactions within the Pi Network. Until the project moves to open trading and gains official recognition on exchanges, the scope of acceptance is expected to remain limited.
Are there any exchanges where Pi Coin can be exchanged?
Currently, Pi Coin cannot be exchanged on major cryptocurrency exchanges like Binance or Coinbase. This is because the project has not yet completed the transition to the open network. Within the closed mainnet, Pi Coin remains inactive and is not available for trading. Until the project moves to open trading platforms, the exchange of Pi Coin is possible only through closed channels or third-party exchanges, which also carries certain risks. Developers promise that after the official launch of the mainnet, Pi Coin will be available for exchange on major cryptocurrency platforms.
At the same time, companies accepting cryptocurrencies through 0xProcessing can offer their clients the ability to work with liquid assets and convert cryptocurrency into fiat without the limitations associated with projects that are still on closed networks.
Key Takeaways Based on the Reviewed Facts
Pi Network has sparked a lot of debate and questions within the cryptocurrency community. On one hand, the project is actively attracting attention and building a large user base. At its core, Pi Network is based on the idea of mobile mining, making it accessible to a wide audience. However, the project faces several issues, such as lack of transparency, closed-source code, and restrictions on withdrawing funds. These factors raise doubts among many users, leading them to question whether Pi Coin is a scam or has long-term potential.
Possible Future Scenarios for the Project
The future of Pi Network depends on how the development team addresses several critical issues: completing the transition to mainnet, increasing the number of partners, and growing the real value of Pi Coin. If the project fulfills its promises regarding the mainnet launch and enables Pi Coin to be traded on major exchanges, it could secure a strong position in the cryptocurrency market. However, if the developers fail to meet these promises or continue to remain opaque, the project risks becoming just another failed cryptocurrency, marked by scandals and loss of trust.
What Business Owners and Investors Should Consider Before Participating in Pi Network
For business owners and investors, it’s important to keep in mind that Pi Network is not yet a fully developed cryptocurrency ready for commercial use. Before investing or integrating Pi Coin into business platforms, it’s wise to closely follow the project’s development and its key stages. Waiting for the readiness of the main network and the emergence of real partners accepting Pi Coin as a payment method will help mitigate risks. If the project successfully enters the market and proves its value, it could become an interesting business opportunity. However, as long as Pi Coin is not listed on major exchanges and cannot be used for mass payments, the risks remain high.
Integrating Cryptocurrency Payments into Your Business with 0xProcessing
0xProcessing provides reliable and secure solutions for working with cryptocurrencies. The platform supports over 55 cryptocurrencies, enabling businesses to easily accept payments, convert them into fiat, and withdraw funds to bank accounts. With its blockchain infrastructure, the company ensures a high level of security and minimizes risks, simplifying the process of working with cryptocurrencies for businesses.
