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What is a Pi coin?
One of the most controversial projects of 2025, the Pi Network, promises mobile cryptocurrency mining but has faced criticism for centralized control, inflated user numbers, and inflationary Tokonomics.
Everyone is talking about Pi Coin. It is arguably the most controversial project of 2025.
On the surface, Pi Network is a digital currency and decentralized finance project developed by Stanford alumni Nicholas Kokalis, Chengdiao Fan and Vince McPhillip. In the year In development since 2019, anyone should be able to mine crypto via a mobile app.
However, if you dig deeper, the project has faced ongoing criticism. For example, while Pi Network claims to have more than 60 million users worldwide, blockchain data indicates that there are significant discrepancies between these figures and actual activity.
Additionally, the project's inflationary tokonomics, centralization of regulation, and reliance on advertising revenue have drawn criticism for decentralizing and prioritizing user monetization over innovation.
In the year With the transition to an “open network” expected in the first quarter of 2025, the ecosystem is approaching a critical moment — a trial in the gladiator ring, so to speak — fueling the ongoing clamor.
Did you know this? Before creating the P Network, Nicholas Kokalis developed an early framework for writing “smart contracts” on fault-tolerant distributions during his PhD. Working at Stanford University, even before blockchain and Ethereum were introduced.
Pi Coin: A timeline of key events
Launched in 2019 for smartphone-based crypto mining, the Pi network has gone through several phases, including a testnet, a node program, and a closed mainnet. It is now transitioning to an open network with the main migration in early 2025.
March 14, 2019: Official Launch – Pi Network officially launched on Pi Day (March 14), which represents the mathematical constant π (3.14). The first version of the mobile app allowed users to mine Pi cryptocurrency, called “pioneers,” directly from their smartphones. March 14, 2020: Launch of Testnet Phase – Marking its first anniversary, P Network has launched the testnet phase. A step towards decentralization. This phase enabled the deployment of distributed nodes around the world, allowing community developers to test the blockchain and create utilities using Test-Pi.Late 2020: Introduction to Node Programming – Pi Network allows users to run network nodes on personal computers. This initiative empowers pioneers to contribute to the network's security and transaction integrity, fostering decentralization December 2021: Closed Mainnet Launch – The P network transitions to the closed mainnet phase, where the main network is live but has a firewall blocking outside communication. It allows the community to complete Know Your Customer (KYC) verification and transfer their PIs to the live mainnet blockchain as they build apps and utilities in the blockchain. October 2023: Roadmap Announcement – PiCore team releases milestone-based roadmap. List past achievements, ongoing projects and future endeavors. This roadmap provides clarity and outlines the steps leading to the Open Mainnet. December 2024: Open Network Update – The Pi Networks team announced that the Open Mainnet launch, originally expected in late 2024, has been postponed to the first quarter of 2025. This decision aims to allow more users to complete KYC verification and transfer their tokens to the network, making it more inclusive and secure. ecosystem.January 2025: Mainnet migration progress – By January 2025, Pi Network had more than 18 million KYC verified users, more than eight million of whom had migrated their tokens to the network. The team has extended the KYC and Mainnet Migration Grace period till January 31 to facilitate the transition.
Differences between Pi coin and Bitcoin
Launched in 2009, Bitcoin (BTC) is a widely accepted digital asset with a hedged supply. Launched in 2019, Pi coin offers mobile app-based mining and aims for wide reach, but is still in its infancy with an unknown market cap.
Pi Coin is breaking the mold of traditional cryptocurrencies. Let's look at the table below to understand this better:
Advantages of the Pi network
By allowing users to mine Pi coins directly from their smartphones, the Pi network removes traditional barriers such as the need for expensive mining equipment or banking services.
In addition to simplifying the mining process, its straightforward design encourages more people to explore Web3 technologies, making cryptocurrency more accessible to a wider audience.
The Pi network also uses the Stellar Consensus Protocol (SCP), which brings benefits such as energy efficiency, decentralized control, and faster transaction speeds.
That said, SCP presents some challenges, such as the complexity of establishing trust relationships between nodes and the reliance on stable network connections, which can be a hindrance in environments with limited connectivity.
Despite these obstacles, one can see how the Pi Network wanted to combine SCP's strengths with its user-oriented approach to create a platform that could provide a more inclusive, scalable and sustainable digital currency solution.
Did you know this? The Pi Network allows users to “mine” Pi coins on their smartphones without draining the battery or using significant computing resources. This is made possible by special computer nodes running SCP, which do the work of verifying the correct transactions and ensuring the security of the blockchain.
A step-by-step guide to mining Pi coins
How Pi Network approaches mining is its own unique feature. However, with an “invitation-only” system reminiscent of 2020's Clubhouse, things may not be as simple as they seem.
Let's take a look at the steps involved:
Download the Pi Network app: For Android devices, visit the Google Play Store and search for “Pi Network.” For iOS devices, go to the Apple App Store and search for “Pi Network.” Create an account: Open the app and sign in. Using your phone number or Facebook account. Choose a unique username and set a strong password for your security. Enter Invitation Code: PI Network is invitation-only to build a trusted community. You need an invitation code. Existing user to join. If you don't have a code, you can search online or ask friends who are using Pi Network. Complete your profile: Provide your real name as it is required for future verification processes. Select your country and enter a working phone. No. for account recovery purposes. Start mining: After setting up your account, you will see a lightning symbol on the home screen. Tap the lightning to start your first mining session. Each mining session lasts for 24 hours. hours. After that, tap the lightning bolt again to open the app and continue mining. Increase your mining speed: Invite your friends and family to Pi Network using your unique invite code. Your mining rate will increase for each active referral. Join the Pi Network community and participate in discussions to get information and increase your mining speed. Build your security circle: After three days of mining, you can improve the security of the network by adding trusted members to your security. Circle.
Did you know this? Daily participation, while maintaining an active mining status, is very important to the Pi network. Remember to login and tap the lightning bolt every 24 hours.
Is Pi Coin Legit or Scam?
By reading this far, you may have noticed several red flags that may be causing the above question. Here's the truth: Pi Network claims to democratize access to cryptocurrency with its mobile mining platform, but several factors cast doubt on its validity and long-term viability.
Let's know more about these reasons:
1. User participation and transparency issues
P Network reports a user base of over 60 million individuals worldwide. However, blockchain data suggests otherwise. Blockchain explorers like ExplorePi report only 9.11 million wallets, which is only 15% of the claimed user base.
Additionally, only about 20,000 wallets show daily activity, indicating a significant discrepancy between reported and actual participation. This disparity, compounded by the absence of an open network, raises questions about the reliability of user statistics and the actual measurement of adoption.
2. Developmental delays and centralization
Despite six years of development, the Pi network has yet to launch a fully functional mainnet. This timeline is much faster than similar projects like Ethereum and Cardano, which achieved functional mainnets within two years.
Additional to these concerns is network centralization. All active mainnet nodes are controlled only by the Pi core group, which is the opposite of decentralization. While the project promises to eventually become decentralized, its current structure casts doubt on its commitment to this principle.
3. Inflation and Tokonomics
The economic model of the Pi network further loses its legitimacy. The network has experienced rapid inflation, with the supply of Pi tokens doubling in just over a year.
As of January, the circulating supply reached 5.56 billion tokens. Without mechanisms to balance supply and demand, such inflation can erode confidence in its long-term sustainability and reduce inflation significantly.
4. Privacy and Data Security Risks
Pi Network's mandatory KYC process introduces significant privacy risks. Users are required to enter sensitive personal data, including selfie videos and government-issued identification. This data is processed by regional verifiers, which increases the risks of misuse or identity theft.
5. Revenue model and advertising
The project's reliance on in-app advertising raises further questions. Pi Networks says ads help cover operating costs, but its low power needs suggest otherwise. Moreover, Pi Network uses psychological strategies to maintain user engagement. These strategies, while effective in sustaining engagement, can obscure a lack of tangible and attainable content.
So while the Pi network has seen impressive growth in user numbers and visibility, its operational and structural issues have overshadowed it.
Therefore, the door is only partially trusted.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
