Pi Network

Pi Network is a cryptocurrency project launched on March 14, 2019 (Pi Day) by a team of Stanford graduates (About Pi Network). It positions itself as “the first digital currency you can mine on your phone,” aiming to make crypto mining accessible to everyday people without the need for expensive hardware or high energy consumption (Get to know the technology behind Pi network PI | OKX). Pi Network’s vision is to build “the world’s most inclusive peer-to-peer ecosystem” fueled by its Pi cryptocurrency (About Pi Network). The project has attracted a large global following – as of 2023, it claimed over 60 million engaged users (“Pioneers”) mining Pi via its mobile app (About Pi Network).

Pi Network’s founders (Dr. Nicolas Kokkalis and Dr. Chengdiao Fan) are Stanford PhDs who applied academic research to tackle barriers in crypto adoption (About Pi Network). In summary, Pi Network touts itself as a social cryptocurrency focused on mobile mining and broad user participation, in contrast to earlier cryptocurrencies that required specialized mining rigs. (Understanding Pi Network (Pi Coin): A Comprehensive Guide) Pi Network’s website emphasizes its mobile-first approach, branding Pi as “The First Digital Currency You Can Mine on Your Phone,” reflecting its focus on accessible mining via a free, energy-light app.

Overview

Pi Network is a blockchain-based platform where users mine its native token PI by checking into a mobile app daily, rather than by solving complex puzzles. The core idea is to democratize cryptocurrency: users contribute to network security and growth (for example, by referring others or confirming they are real humans) and earn Pi in return (What is Pi Network? Is it a scam?) (What Is Pi Network? | What You Need To Know About Pi Coin | Capital.com). Mining Pi is essentially a “tap to earn” process – once every 24 hours, a user opens the app and clicks a button to receive Pi, demonstrating their engagement (What is Pi Network? Is it a scam?). This lightweight “mining” does not consume significant battery or CPU power, unlike Bitcoin’s proof-of-work mining (What is Pi Network? Is it a scam?) (Cointelegraph Bitcoin & Ethereum Blockchain News).

Pi Network also incorporates social aspects: it’s invite-only (new users join via an existing member’s referral code) and encourages users to form “security circles” of people who trust each other (Get to know the technology behind Pi network PI | OKX). These security circles collectively build a trust graph that is fundamental to Pi’s consensus mechanism.

Purpose and Claims: The project markets Pi as a cryptocurrency that anyone can use and mine, lowering the entry barrier to crypto. Its creators claim Pi will offer “all the advantages of Bitcoin… while avoiding its pitfalls,” by being eco-friendly and user-friendly (What Is Pi Network? | What You Need To Know About Pi Coin | Capital.com). The ultimate goal is not just to distribute Pi widely, but to develop an entire Web3 ecosystem of apps where Pi can be used for payments, social interactions, and more (About Pi Network). Pi Network emphasizes fairness and inclusivity – accounts must represent real individuals (no bots), and mining rewards are adjusted so earlier and more contributing members earn more Pi than late or inactive ones (What is Pi Network? Is it a scam?).

Technical Details

Consensus Mechanism: Pi Network does not use Proof-of-Work (PoW) or energy-intensive mining. Instead, it relies on a Federated Byzantine Agreement (FBA) consensus model derived from the Stellar Consensus Protocol (SCP) (Pi Cryptocurrency White Paper | Pi Network). In this model, each Pi node trusts a group of other nodes (its security circle); consensus is reached through quorum slices of overlapping trust relationships rather than competitive hashing (Pi Cryptocurrency White Paper | Pi Network) (Get to know the technology behind Pi network PI | OKX). This approach means Pi’s transaction validation is “energy-light” and fast, since it involves exchanging trust votes rather than brute-force computing (Pi Cryptocurrency White Paper | Pi Network) (Cointelegraph Bitcoin & Ethereum Blockchain News). Pi’s founders intended to allow everyday users’ devices (like mobile phones or PCs) to serve as nodes, in contrast to Stellar’s nodes being mostly institution-run (Pi Cryptocurrency White Paper | Pi Network). During Pi’s initial years, the Node software was released to community members on a testnet, but the fully decentralized mainnet was delayed – until early 2025, the core team’s nodes exclusively produced blocks (Cointelegraph Bitcoin & Ethereum Blockchain News).

Supply Model: Pi’s economic design has evolved over time. Unlike Bitcoin’s fixed 21 million supply cap (What Happens to Bitcoin After All 21 Million Are Mined?), Pi’s supply was initially open-ended – new Pi were minted as users joined and participated. In the early (pre-mainnet) phase, each new user effectively added a fixed allocation of Pi that could be mined over that user’s lifetime (Pi Cryptocurrency White Paper | Pi Network) (Pi Cryptocurrency White Paper | Pi Network). This led to a rapidly growing supply tied to network growth, which was “not explicitly capped” before mainnet (Pi Cryptocurrency White Paper | Pi Network). However, for the Mainnet launch, Pi introduced a maximum total supply of 100 billion PI (Pi Cryptocurrency White Paper | Pi Network). Of this, 80% (80 billion) is allocated to the community (as mining rewards for users) and 20% (20 billion) to the core team, maintaining the original 80/20 distribution principle (Pi Cryptocurrency White Paper | Pi Network). Notably, Pi Network did not conduct an ICO or token sale – there was no public fundraising or listing event. The core team’s tokens unlock alongside community mining over time, and Pi explicitly warns that any so-called “Pi tokens” trading externally before official open network are not real (Pi Cryptocurrency White Paper | Pi Network). Security Features: A unique aspect of Pi is its emphasis on real user identity and trust. To prevent abuse (like fake accounts mining free Pi), Pi Network requires a Know-Your-Customer (KYC) identity verification for users to transfer their Pi to the mainnet. By early 2025 the project reported over 19 million identity-verified users (Pi Network’s Open Network Launch Raises Legal Concerns) (Pi Network’s Open Network Launch Raises Legal Concerns). This massive KYC process is “crowd-scaled,” meaning community members help validate others, aiming to on-board millions of real people efficiently. The trust graph of Security Circles is another layer of security – users only form circles with people they know, and the consensus algorithm uses these trust relationships to decide which transactions are valid (Get to know the technology behind Pi network PI | OKX). This human-centric security model is meant to “disempower malicious actors, bots, or free riders” while empowering genuine participants (About Pi Network). However, it also means Pi’s design depends on personal data collection (for KYC and social connectivity), raising privacy considerations (see below). Decentralization Status: Pi Network’s stated goal is to become a fully decentralized blockchain run by its community. In practice, the path to that goal is gradual. Throughout Pi’s “Enclosed Mainnet” period (Dec 2021–Feb 2025), the network was live but isolated by a firewall—no external connections or transactions with other blockchains were allowed (Pi Network Addresses Unauthorized Token Listings | Pi Network). During this phase, all active mainnet nodes were controlled by the Pi Core Team, essentially centralizing block production (Cointelegraph Bitcoin & Ethereum Blockchain News). Community-run nodes existed on the testnet, but they did not govern the live ledger. The project defended this approach as a temporary measure to guard the network and complete KYC/migration before opening up (Pi Network Addresses Unauthorized Token Listings | Pi Network). On Feb 20, 2025, Pi Network transitioned to its Open Network phase, removing the firewall and allowing connections to other networks and exchanges (Pi Network’s Open Network Launch Raises Legal Concerns). At this point, Pi claims the network will gradually decentralize as more community nodes join the mainnet. Critics have noted that as of the open launch, there were “no signs of independent validators” yet and that control was still effectively in the hands of the core team (Pi Network token crashes 65% following mainnet launch). Ensuring true decentralization remains an ongoing challenge for Pi as it moves forward.

Recent Warnings and Concerns

Despite its popularity, Pi Network has faced significant scrutiny and warnings from both industry experts and regulators: Regulatory Alerts: Authorities in multiple countries have cautioned the public about Pi. In China, where Pi garnered a huge following, police and financial commentators in 2023 warned users to stay away, describing Pi Network as a possible scam targeting vulnerable groups (Bybit CEO Ben Zhou Labels Pi Network a Scam, Citing Official Police Warning) (Pi Network token crashes 65% following mainnet launch).

A Chinese police report alleged the project was tricking elderly people into giving up personal data and even pensions, prompting one crypto exchange CEO to label Pi “a scam” and refuse listing it (Bybit CEO Ben Zhou Labels Pi Network a Scam, Citing Official Police Warning). Vietnam’s Ministry of Public Security likewise issued a legal warning in 2022, stressing that Pi is not recognized as lawful currency and that using it for transactions could violate the law (Pi Network Adoption Surges Despite Regulatory Warnings). Vietnamese police noted “Pi lacks practical applications; its value is self-assigned” and urged citizens to be wary (Pi Network Adoption Surges Despite Regulatory Warnings). South Korea and Thailand have also indicated Pi has no legal status as a payment method, meaning businesses accepting Pi do so in a gray area (Pi Network Adoption Surges Despite Regulatory Warnings).

Pyramid Scheme Accusations: Pi’s growth strategy relies on referrals (users inviting others to increase their own mining rate), which has drawn comparisons to multi-level marketing. Blockchain experts have pointed out Pi’s “pyramid-like structure” (Pi Network’s Open Network Launch Raises Legal Concerns) – rewards for recruiting new members – and some have gone as far as calling it “the largest pyramid scheme in the Chinese-speaking world.” (Pi Network’s Open Network Launch Raises Legal Concerns) Prominent crypto journalist Colin Wu cautioned that Pi’s model could run afoul of strict anti-pyramid laws in certain regions (Pi Network’s Open Network Launch Raises Legal Concerns). However, not all go so far as to label it an outright scam; one analyst remarked, “Pi is a pyramid scheme, but not a scam,” implying that while its marketing is referral-driven, it wasn’t blatantly defrauding users of money (Pi Network’s Open Network Launch Raises Legal Concerns) (since joining the network is free). The Pi Core Team has consistently denied being a Ponzi or scam, asserting that Pi’s referral system is simply a growth tool and that no one loses money (only time and data) by participating. Still, the pyramid accusations hang over Pi’s reputation, and experts warn that if Pi fails to deliver real value, its structure could leave millions disappointed.

Lack of Value and Trading Restrictions: A fundamental concern has been that for years Pi had no convertible value. The Pi team repeatedly told its community that Pi was “not worth money” yet and should not be viewed as a tradable asset until the network was fully open (Pi Network’s Open Network Launch Raises Legal Concerns). Until early 2025, users could not withdraw Pi or exchange it for other currencies (What is Pi Network? Is it a scam?). Any price one saw quoted for “Pi” was speculative. (In fact, some third-party exchanges began listing IOUs or placeholder tokens called PI in late 2022/2023, but Pi Network disavowed these as unauthorized (Pi Network Addresses Unauthorized Token Listings | Pi Network) (Pi Network Addresses Unauthorized Token Listings | Pi Network).) Pi Network explicitly warned users that any exchange listings were “illegal, unauthorized and fake”, since during the enclosed period it was “technically impossible” for real Pi to leave the network’s firewall (Pi Network Addresses Unauthorized Token Listings | Pi Network). This meant early “Pi trading” was purely speculative with no actual Pi moving – buyers were trading a promise for future Pi, which might never be fulfilled (The full review of the Pi network: scam or legit? - TradeCrypto). The situation led some observers to question if Pi was effectively vaporware. As one analysis in 2023 put it: Pi had “no value…no live blockchain…no wallet” – just an app where people tap a button (What Is Pi Network? | What You Need To Know About Pi Coin | Capital.com). This uncertainty persisted until the Open Mainnet launch, after which several exchanges did list Pi. Even then, the price of PI was extremely volatile (plunging over 65% from an initial spike once real trading began) (Pi Network token crashes 65% following mainnet launch) (Pi Network token crashes 65% following mainnet launch), reflecting skepticism and the lack of established demand.

Transparency and Credibility Issues: Critics have flagged Pi Network’s unusual development timeline and opacity. By late 2024, Pi had been in development over 5 years without releasing a public mainnet, far longer than most crypto projects (for comparison, Ethereum and Cardano launched functional mainnets within 2 years of development) (Cointelegraph Bitcoin & Ethereum Blockchain News). This raised doubts about the project’s progress and technical substance. Notably, Pi’s documentation was seen as lacking; for a long time, there was no updated technical whitepaper beyond the initial 2019 draft, leading to criticism about “lack of a detailed white paper or technical documentation” (What is Pi Network? Is it a scam?). Without open-source code or clear technical specs, outsiders found it hard to assess Pi’s blockchain or verify its claims. Additionally, Pi’s economic model drew concern: before a cap was set, the token supply ballooned along with user growth (over 5+ billion Pi issued as of early 2023) (Cointelegraph Bitcoin & Ethereum Blockchain News), which could dilute value if demand doesn’t keep up. Some analysts called Pi’s tokenomics “inflationary” and unsustainable (Cointelegraph Bitcoin & Ethereum Blockchain News).

Privacy and Data Concerns: To participate fully in Pi, users must provide personal information (including government IDs and selfie videos for KYC). This has prompted worries about how that data might be used. In Pi’s KYC process, data is handled by “regional validators” (other Pi users verifying identities) (Cointelegraph Bitcoin & Ethereum Blockchain News). Observers note this system could be vulnerable to privacy leaks or abuse, especially given the massive scale (tens of millions of IDs). Chinese authorities in their warning alleged that Pi’s operators might be collecting personal data for other motives (Bybit CEO Ben Zhou Labels Pi Network a Scam, Citing Official Police Warning). Pi Network insists that KYC is only for network integrity and that it employs strict measures to protect user data, but the requirement undoubtedly introduces trust in a central authority (the Pi Core Team and KYC providers) which purists note is contrary to the ethos of decentralization.

Monetization and “Free Mining” Skepticism: Since users don’t pay to mine Pi, critics have asked: what’s in it for the Pi Network operators? The app itself contains ads – Pi Network started showing in-app advertisements to its users, saying the ad revenue helps cover operational costs. Some have questioned this, given that running a lightweight consensus shouldn’t be very costly, suspecting the team may be profiting significantly from an enormous user base’s attention (Cointelegraph Bitcoin & Ethereum Blockchain News). The app’s design (daily engagement streaks, referral incentives) keeps users coming back, which in turn boosts ad impressions. This has led to accusations that Pi is “leveraging psychological strategies” to maintain growth while delaying deliverables (Cointelegraph Bitcoin & Ethereum Blockchain News). Essentially, skeptics worry that Pi Network’s team benefits from millions of users’ data and ad revenue while those users await a future payoff that may not materialize. The Pi Core Team has responded that slow development is a deliberate “cautious strategy for long-term success” and that building a robust ecosystem first will make the Pi tokens valuable in the end (What is Pi Network? Is it a scam?). As of now, the project’s long-term viability remains unproven – even Pi’s supporters acknowledge that the mainnet launch and adoption in real apps will be the pivotal test (What is Pi Network? Is it a scam?).

It’s worth noting that no major financial regulator has officially labeled Pi Network a scam as of this writing, and the project has millions of genuine users. However, authorities and experts have consistently urged caution. Cointelegraph summarized the situation well: “at the moment, Pi Network has not been classified as a scam project. However, its long-term viability and the future value of its token remain uncertain.” (What is Pi Network? Is it a scam?) In other words, Pi Network’s legitimacy hangs on whether it can transition from a hyped-up concept into a functional, decentralized cryptocurrency with real utility.

Comparison with Bitcoin & Ethereum

Pi Network often invites comparison to Bitcoin (the original cryptocurrency) and Ethereum (the leading smart contract platform), but it differs markedly in technology, use case, and adoption stage: Launch and Purpose: Bitcoin (BTC) launched in 2009 as a peer-to-peer digital cash system, and over time became viewed as “digital gold” (a store of value). Ethereum (ETH) launched in 2015 with the purpose of extending blockchain to support programmable smart contracts and decentralized applications. Pi Network, launched in 2019, is closer to Bitcoin in vision – a digital currency for everyday transactions – but takes a very different approach to achieve mass adoption (mobile app mining and social networking). Pi’s creators explicitly aim to offer Bitcoin’s benefits (secure, borderless currency) while fixing perceived issues like accessibility and scalability (What Is Pi Network? | What You Need To Know About Pi Coin | Capital.com). Unlike Ethereum, which from day one targeted developers (with its Solidity programming and DeFi apps), Pi targets non-technical users, emphasizing a simple user experience on smartphones.

Consensus Mechanism & Energy: Bitcoin runs on Proof-of-Work, where miners compete using intensive computing power to add blocks. This mechanism is highly decentralized and secure, but consumes a great deal of electricity and computing resources. Ethereum used PoW until 2022, when it switched to a Proof-of-Stake (PoS) consensus. Under PoS, Ethereum requires validators to stake ETH and uses a lottery-like process to choose block producers, cutting energy use by ~99% and improving security against 51% attacks (Proof-of-stake (PoS)). By contrast, Pi Network uses neither PoW nor PoS. Its consensus is based on the Stellar Consensus Protocol (SCP) – a form of Federated Byzantine Agreement. There are no miners or stakers; instead, Pi relies on a quorum of trusted nodes reaching agreement via message exchanges (Pi Cryptocurrency White Paper | Pi Network) (Get to know the technology behind Pi network PI | OKX). This makes Pi extremely energy-efficient (mobile nodes can run it) and fast, theoretically on par with other non-PoW networks (Cointelegraph Bitcoin & Ethereum Blockchain News). However, it also means Pi’s security depends on the trust graph and honest majority of its vetted members, rather than on mathematical work or economic stake. In summary: Bitcoin = PoW (max security, high energy); Ethereum = PoS (high security, low energy after 2022); Pi = SCP/FBA (low energy, needs trust in node reputations).

Supply and Token Economics: Bitcoin has a fixed supply cap of 21 million BTC – a hard limit that gives it scarcity (What Happens to Bitcoin After All 21 Million Are Mined?). New BTC are released on a predictable halving schedule approximately every 4 years, and no more will be minted after 2140. Ethereum’s monetary policy is different: Ethereum does not have a fixed supply cap. It started with about 72 million ETH (from its initial sale) and issues new ETH to validators each year. However, after upgrades like EIP-1559 (which began burning a portion of transaction fees) and the PoS transition, Ethereum’s effective inflation rate dropped near zero or even negative at times (ETH can become deflationary when usage is high, since fees burned can outpace issuance) (Proof-of-stake (PoS)). Pi’s supply is intentionally large and grew with its user base. Rather than fixed scarcity, Pi focused on wide distribution. The project eventually set a maximum of 100 billion PI coins (Pi Cryptocurrency White Paper | Pi Network) – orders of magnitude more units than BTC or ETH – to allow small fractions of Pi to be used in everyday transactions if it becomes popular. Importantly, Pi did not distribute coins via a public sale; instead, users “mine” all circulating Pi over time by engagement. As of January 2025, about 5.5 billion Pi were circulating (in enclosed accounts) out of the 100B max (Cointelegraph Bitcoin & Ethereum Blockchain News), and mining continues albeit at a reduced rate. This means Pi’s economic model is inflationary in early stages (to reward growth) and meant to stabilize later. While Bitcoin’s value partly comes from strict scarcity, Pi’s philosophy is that value comes from utility and usage – an abundant currency can still be valuable if millions of people use it daily, though skeptics worry that an oversupply of Pi with limited demand could keep its price low.

Decentralization and Governance: Bitcoin is highly decentralized — tens of thousands of independent nodes run its software globally, and no central authority can change its rules easily. Ethereum is also decentralized, though its shift to PoS means large stakeholders and staking pools have influence in validating blocks. Both BTC and ETH are supported by mature open-source communities and have no single company in control. Pi Network, on the other hand, began life far more centralized. For most of its existence, the Pi Core Team (a private company) controlled the network in an “enclosed” environment (Pi Network Addresses Unauthorized Token Listings | Pi Network).

Only in 2025 did Pi start allowing community nodes to participate in consensus on the mainnet. Pi’s codebase is not yet as battle-tested or openly developed as Bitcoin’s or Ethereum’s, and governance decisions (like economic changes or roadmap delays) have been made by the core team rather than by decentralized consensus. The Pi community is extensive, but it’s more akin to an organized user base than the leaderless, voluntary network that Bitcoin enjoys. The contrast is stark: Bitcoin and Ethereum achieved permissionless operation relatively quickly, whereas Pi is still in the process of handing over control to its community. The Pi team says decentralization is the end goal, pointing to the increasing number of node operators from its user base. However, critics note that as of the open network launch, “all active mainnet nodes [were] controlled exclusively by the Pi core team, contradicting its claims of decentralization.” (Cointelegraph Bitcoin & Ethereum Blockchain News) Full decentralization for Pi will require time and trust that the core team truly relinquishes control.

Smart Contracts and Functionality: Ethereum’s hallmark feature is that it’s a Turing-complete blockchain platform – developers can deploy smart contracts to run complex applications (DeFi protocols, NFTs, games, etc.). Bitcoin, by design, has limited scripting capability and is mainly used for value transfer (though layer-2 solutions and sidechains bring some extended functionality). What about Pi Network? Pi’s 2019 whitepaper mentioned ambitions to support smart contracts and dApps, effectively aiming to be a platform cryptocurrency like Ethereum (Pi Cryptocurrency White Paper | Pi Network). Indeed, Pi Network has hosted hackathons and encouraged developers to build apps for the Pi ecosystem (such as marketplaces where Pi can be spent). During the Enclosed Mainnet, some Pi apps were built that could interact with Pi balances within the closed system. However, since Pi’s mainnet was not open until 2025, these apps remained limited to Pi’s sandbox.

As of the Open Mainnet, Pi does have its own blockchain that could in theory support smart contracts (the project’s tech stack has not been fully detailed publicly, but it’s likely capable of at least token transfers and basic scripts). In comparison, Ethereum already powers thousands of live applications and has a huge developer community, whereas Pi’s application ecosystem is nascent – its success will depend on whether developers find it worthwhile to build on Pi versus established platforms. In essence, Bitcoin is simple and ultra-stable but not app-focused; Ethereum is a rich smart contract world; Pi aspires to be a user-friendly smart contract platform, but that remains mostly potential at this stage.

Adoption and Market Status: Bitcoin and Ethereum are the two largest cryptocurrencies by market capitalization, widely traded on virtually every crypto exchange worldwide, and increasingly known by the general public. Bitcoin has even been adopted as legal tender by countries like El Salvador, and Ethereum underpins a significant portion of the decentralized finance and NFT markets. Both have high liquidity and clear market value (BTC and ETH prices are tracked by institutional investors, ETFs, etc.). Pi Network, in contrast, only entered the open market in 2025, and even then its availability is limited. Upon Open Mainnet, a few exchanges (such as OKX, MEXC, and Bitget) listed Pi for trading (Pi Network token crashes 65% following mainnet launch), but major exchanges like Binance or Coinbase have not listed it as of early 2025. The initial trading of Pi saw extreme volatility, with PI’s price spiking and then crashing as the market tried to discover a fair value (Pi Network token crashes 65% following mainnet launch). Pi’s real adoption is currently within its own community – some small businesses and community marketplaces (especially in Asia) started accepting Pi for goods/services in barter-like arrangements (Pi Network Adoption Surges Despite Regulatory Warnings) (Pi Network Adoption Surges Despite Regulatory Warnings), but Pi is far from mainstream usage. Additionally, regulators have not yet clarified Pi’s status; whereas Bitcoin and Ether are generally considered commodities or non-securities in many jurisdictions, Pi’s classification could face challenges due to its unusual distribution model (and past referral incentives). In summary, Bitcoin & Ethereum are established and liquid, with large-scale adoption in finance and technology, while Pi is still an experiment with a large user base but minimal integration into the broader crypto economy so far.

Current Status and Other Information

Mainnet Launch and Migration: After years of anticipation, Pi Network’s Open Mainnet went live on February 20, 2025 (Pi Network’s Open Network Launch Raises Legal Concerns). This milestone allowed users to finally move Pi out of the enclosed environment. By late February 2025, Pi Network reported that over 10 million users had migrated their Pi balances to the mainnet (out of ~18 million who passed KYC) (Pi Network’s Open Network Launch Raises Legal Concerns).

Blockchain explorers show on the order of ~9 million Pi addresses created on the network around launch time (Pi Network token crashes 65% following mainnet launch). These numbers, while large, are smaller than Pi’s total sign-ups (60+ million), indicating that many users still haven’t completed KYC or migration. The Open Network means Pi can now be sent to external wallets and exchanges, and developers can interact with Pi’s blockchain without special permission. This is a crucial step for Pi’s credibility – an open blockchain is a basic requirement for a crypto’s transparency and utility.

Exchange Listings and Price Action: With the network opening, some exchanges listed Pi trading pairs. On launch day, PI tokens were listed on exchanges like OKX, Bitget and MEXC at prices around $1–$2 (Pi Network token crashes 65% following mainnet launch).

However, the market was thin and volatile; PI’s price plunged ~65% within days (from ~$1.84 to ~$0.64) (Pi Network token crashes 65% following mainnet launch). This steep drop suggests that once users were able to trade actual Pi, many tried to sell, outpacing new demand. It highlights that Pi’s earlier speculative valuations (at one point, unauthorized markets priced PI much higher) were not grounded in real liquidity. The Pi Core Team has urged the community not to focus on short-term price and to avoid scams, reiterating that any Pi trading outside official channels prior to open mainnet was invalid (Pi Network Addresses Unauthorized Token Listings | Pi Network) (Pi Network Addresses Unauthorized Token Listings | Pi Network). Notably, Pi Network still has no official presence on major exchanges and the core team did not itself list the token – the listings that occurred were initiated by exchanges (sometimes controversially).

For example, the CEO of Bybit publicly stated his exchange will not list Pi until the project proves its legitimacy, citing the earlier police warnings (Bybit CEO Ben Zhou Labels Pi Network a Scam, Citing Official Police Warning). So Pi’s market status is still tentative. The coin is now technically tradeable, but its true value will depend on organic demand, which in turn depends on whether the Pi ecosystem can produce useful applications or commerce.

Ongoing Development and Ecosystem: The Pi Core Team has outlined plans to build utility for the Pi coin. During the enclosed phase, they ran hackathons encouraging developers to create Pi apps (for example, apps for peer-to-peer marketplace, social media, games, etc., where Pi is used as currency). Some of these apps are available through the Pi Browser (an integrated dApp platform for Pi users). With the open network, these apps could connect Pi to external services. Additionally, Pi Network introduced programs like Pi Workforce/Pi Jobs (to hire freelancers for Pi) and partnerships with small businesses (some vendors in certain countries started accepting Pi from users). While these remain pilot efforts, they indicate Pi’s strategy to drive real-world usage. The success of Pi’s ecosystem is uncertain – it faces a classic “chicken-and-egg” problem: merchants won’t value Pi until it’s widely used, and users won’t value it until they can spend it. Pi’s huge user count is an asset, but converting those users from passive miners to active economic participants is the next hurdle.

Credibility and Outlook: Now that Pi Network has taken the critical step of opening its blockchain, the project will be under pressure to deliver on decentralization and utility. Community sentiment is mixed: many Pioneers are optimistic and continue to support Pi, pointing to the committed core team and the passionate community as strengths. They argue that Pi’s long “incubation” was to ensure compliance (KYC) and to avoid bot abuse, thereby laying a stable foundation. On the other hand, critics remain skeptical, noting that Pi’s mainnet launch was delayed multiple times (the roadmap was pushed from end of 2021 to 2022, then to 2023, then actually occurred in 2025) (Cointelegraph Bitcoin & Ethereum Blockchain News). They also point out that much of Pi’s operation still resembles a startup company’s product rather than a decentralized network – for instance, the KYC process and ecosystem app platform are centrally coordinated. The next year or two will be telling: if independent nodes start running the network and if Pi apps gain traction, Pi Network could shake off the scam allegations and prove itself as an innovative “Web3 social experiment”. Alternatively, if most users simply cash out their Pi and activity dwindles, the project could fade as another failed cryptocurrency.

Official Advisories: It’s important for users to rely on official Pi Network channels for information. The core team has repeatedly advised Pioneers to “beware of scams” and impostors. They stress that Pi is not sold through any ICO and any party soliciting investment in Pi is illegitimate (Pi Cryptocurrency White Paper | Pi Network). The only way to obtain Pi is by earning through the app or receiving from another user once transfers are open. Also, Pi Network’s terms prohibit selling Pi for fiat before the open network (to prevent OTC market scams).

Now that the open network is here, users should still exercise caution: the Pi team has noted that “impersonators have no affiliation with Pi” and that all Pi can be securely accessed only via the official Pi wallet or app (Pi Cryptocurrency White Paper | Pi Network).

In summary, Pi Network stands at a crossroads between promise and controversy. It starkly differs from Bitcoin and Ethereum in how it’s built and grown – prioritizing social reach over immediate decentralization. This has led to unprecedented scale (tens of millions of users) for a new cryptocurrency, but also unprecedented skepticism about whether those users will ever hold something of value. Now with an open mainnet, Pi Network has the opportunity to validate its concept. Observers will be watching whether Pi can transition to a truly decentralized network with a thriving economy, or whether it will falter under the weight of its earlier hype. As of early 2025, Pi remains an experimental project: widely known, closely watched by regulators, and still in the process of proving its utility and credibility in the crypto world.

Sources:

Pi Network Official Site – About Pi Network (About Pi Network) (About Pi Network) (About Pi Network); Pi Whitepaper (2019 & 2021) (Pi Cryptocurrency White Paper | Pi Network) (Pi Cryptocurrency White Paper | Pi Network) (Pi Cryptocurrency White Paper | Pi Network); Pi Network Announcement (Pi Network Addresses Unauthorized Token Listings | Pi Network) (Pi Network Addresses Unauthorized Token Listings | Pi Network). Cointelegraph – What is Pi Network? (Jan 2025) (What is Pi Network? Is it a scam?) (What is Pi Network? Is it a scam?); Pi Network mainnet launch news (Feb 2025) (Pi Network token crashes 65% following mainnet launch) (Pi Network token crashes 65% following mainnet launch); “Truth about Pi coin” Analysis (Jan 2025) (Cointelegraph Bitcoin & Ethereum Blockchain News) (Cointelegraph Bitcoin & Ethereum Blockchain News). CoinDesk – Bybit CEO labels Pi a scam (Feb 2025) (Bybit CEO Ben Zhou Labels Pi Network a Scam, Citing Official Police Warning). BeInCrypto – Pi Network legal warnings (Feb 2025) (Pi Network’s Open Network Launch Raises Legal Concerns) (Pi Network’s Open Network Launch Raises Legal Concerns); Regulatory warnings in Asia (Oct 2023) (Pi Network Adoption Surges Despite Regulatory Warnings) (Pi Network Adoption Surges Despite Regulatory Warnings). Capital.com – Pi Network explained (Aug 2024) (What Is Pi Network? | What You Need To Know About Pi Coin | Capital.com) (What Is Pi Network? | What You Need To Know About Pi Coin | Capital.com). Investopedia – Bitcoin supply cap (What Happens to Bitcoin After All 21 Million Are Mined?). Ethereum.org – Proof-of-Stake explanation (Proof-of-stake (PoS)).