Pi Network is a “legit” cryptocurrency project that is still in development. The project has drawn criticism due to its relatively slow rollout of new features, the open mainnet launch delays, and the slow KYC process. Due to these reasons, some users believe that the project won’t ever live up to its full potential, with some going as far as calling it a scam.
Key highlights:
- Pi Network provides a detailed whitepaper outlining its goals, token model, and roadmap, with regular updates to its development progress. While not flawless, this level of transparency supports its credibility.
- With over 60 million users and one of the most downloaded crypto apps globally, Pi Network’s popularity demonstrates its widespread appeal.
- The project features a functional testnet and mainnet, which support active transactions and app development. This operational blockchain infrastructure adds weight to the project’s legitimacy.
- Critics point to delays in launching the open mainnet and slow KYC processes as red flags. These issues, combined with limited communication from the developers, fuel skepticism about whether the project will fulfill its promises.
In this article, we are going to examine the current state of the Pi Network and provide our opinion on whether Pi Network is legit or a scam.
Is Pi Network legit? Arguments in favor of Pi crypto
There are several indications that support the claim that Pi Network is legit. First of all, the Pi Core Team is mostly transparent about the development status of new features and has clearly outlined the goals of the cryptocurrency in the comprehensive whitepaper. Secondly, Pi Network has millions of users and is constantly adding new features to the platform. Finally, the network’s mainnet is live and slowly getting prepared for external connectivity. Let’s explore each of these arguments in more detail.
A comprehensive white paper and documentation
Pi Network has a very comprehensive whitepaper that outlines the project’s goals and plan of action. The first edition of the whitepaper was released in March 2019. The second version, which includes chapters on the token model and mining and roadmap, was published in December 2021. In addition to the whitepaper, the official Pi Network homepage provides ample information on Pi Blockchain, node operations, and other products and services on the Pi platform.
While Pi Network’s level of documentation is not on par with projects like Ethereum or Cardano, for instance, it’s still way more comprehensive than thousands of other projects in the crypto space. It’s true that doesn’t guarantee legitimacy in itself, it indicates that the project is more likely to be legit than a scam.
High adoption with millions of users
As of this writing, Pi Network has a 60 million strong global user base. A big part of the reason for the high number is undoubtedly the fact that users can earn Pi coin rewards in exchange for completing tasks in the mobile app and referring their friends and family. Still, if the application was a scam, or users would start complaining about suspicious activity on their devices or user data breaches, the application would never reach the high number of users it has today.
The Pi Network app has been downloaded over 100 million times, making it one of the most popular crypto apps in the world. (Source: Google Play)
The Pi app has more than 100 million downloads on Android devices alone, with an average rating of “4.5”. The relatively high rating speaks to the application’s popularity and users’ general satisfaction with the app.
Pi Network’s blockchain activity
The Pi Network’s mainnet facilitates tens of transactions each minute. (Source: Pi Network explorer)
Pi Network’s testnet and mainnet are both very active. There are, on average, over 100 transactions per minute executed on the testnet and about 20 on the mainnet. The number of transactions on the mainnet will likely increase significantly after the mainnet leaves the “Enclosed Period” state and gains external connectivity. As things currently stand, the Pi mainnet is closed to external sources, meaning that it runs behind a firewall that prevents, as the team puts it, any unwanted connections.
Is Pi Network a scam? Arguments against Pi crypto
Critics of the Pi Network claim that the team has no intentions of launching the open version of the Pi mainnet, citing the constant delays associated with the launch of Pi’s Open Network. Also, the slow speed of the KYC process and high personal data requirements are making some users on social media think that Pi Network is not legit, though it should be noted that the speed and reliability of their KYC process have significantly improved since May 2024.
Pi Network’s open mainnet launch delays and lack of communication from the Pi Core Team
The so-called “Open Network Period” on the Pi Network was initially slated to start in 2022, although the team did state that it could be going live later. As of this writing, more than 2 years after one of the target dates, there is still no concrete information available regarding the opening of the mainnet. The Pi Core Team also unveiled a revamped roadmap, but it turned out to be quite disappointing for many fans since the roadmap didn’t include any concrete plans or dates for when the Open Network Period would start.
The launch of the Open Network Period, which would provide external connectivity and likely make Pi coin trading possible, is running more than a year late. (Source: Pi Network blog)
The Pi team claims that it is hesitant to open the mainnet to provide enough time for developers to adapt their apps for the mainnet and give users time to transfer their PI from the testnet to the mainnet. There is a contentious debate going on in the Pi Network community circles whether the Pi team is delaying the launch of the Open Network Period due to listed concerns or if it’s just buying time and has no intention of actually opening the mainnet.
Another aspect of open mainnet delays that some users find frustrating is the lack of information coming from the Pi Core Team. Many members of the community have expressed their discontent with the slow trickle of information that is served to the community and fear that the Open Network Period will never see the light of day.
And it’s not hard to see why many feel this way—whenever the Pi Core team publishes an update regarding the Open Network, it’s never as simple as a plain release date, and if it is, the date ends up getting delayed. Their latest update, published in December 2023, promises that the Open Network Period will begin in 2024, as long as certain arbitrary goals are reached.
One light at the end of the tunnel seemed to be their Mainnet migration deadline, where users had to complete the KYC process in order to migrate their Pi to the Mainnet if they wanted to keep the Pi Coins. This deadline is currently set for 31 December 2024. While that by itself likely means that the Open Network Period won’t start in what little remains of 2024, it could signal that they plan on launching the mainnet sometime in 2025. If we had to guess, they will launch the Open Network around March 2025, since that is when the next Pi Day celebration takes place. This is of course just an educated guess, nothing more.
No way to trade Pi coins, and issues with the KYC process
Four years after the launch of the Pi app that gave users the ability to mine Pi coins, there is still no way to trade real Pi coins. Some exchanges – like Huobi and Bitmart – have listed Pi, but that are just IOU versions of the token and not the real deal. In fact, the Pi Core team has warned its users against participating in transactions. If you send your Pi coins to these exchanges, you might lose them forever, as they don’t support the Pi blockchain.
Latest News: Regarding the announcement of the launch of #PiNetwork on Huobi Exchange, it is also not authorized by PiCT! Remind everyone to understand that Pi has not opened the main network yet, please do not participate in the transaction, so as not to be deceived!
Danger!? pic.twitter.com/Y0DfzGRdqY
— Pi News (@PiNewsMedia) December 29, 2022
However, these IOUs do give us insight into Pi Network’s price potential. When they first appeared, these IOUs were worth nearly $300. That price dropped rapidly, though the price remains steady at just under $60 at the time of writing, indicating that many people speculate that Pi could be incredibly valuable once the tokens are available for trading.
Other than IOUs, Pi Coin can theoretically be traded in the P2P manner, both online and offline. However, you must first complete the KYC process, which in some cases, takes over a year. Also, most people claiming to be buying PI coins on the internet are scammers, luring users into sending them their PI with no intention of ever paying for them.
The KYC process in general has been the topic of many discussions, as it asks for sensitive user data. On top of that, the process is known to be extremely slow, though the Pi Core team has recently been addressing these issues, most recently with unblocking a million users who have just been perpetually stuck in the KYC process.
Personal data requirements
When using the Pi app, you’ll need to provide your personal information, including your real name and email address, connect your Facebook or Google accounts, and more. The KYC process, which unlocks the ability to transfer Pi coins from the testnet to the mainnet, requires users to provide their personal information.
Some users believe that the Pi project is selling personal data to third parties. It is worth noting that the team has stated that they are not selling user data. It is also worth pointing out that it is very unusual for a cryptocurrency project to collect personal data on its users. Most projects in the crypto space are centered around privacy and user anonymity, not the other way around.
The bottom line: Pi Network seems legit, but you shouldn’t be surprised if it never lives up to its full potential
Generally speaking, Pi Network seems legit. It has a functional testnet and mainnet, its own block explorer and browser, and a very popular crypto app with a growing number of features—all of which speak to the project’s legitimacy. However, the lack of information shared by the Pi Core Team and the slow rollout of new features are cause for concern and explain why some users consider the project to be a scam.
If the Open Network Period launches soon and Pi gets listed on crypto exchanges, then we could see the price of PI coin explode, especially when accounting for its large user base and millions of holders. If you want to see where the price could be headed after the open network launch, you can check our Pi Network price prediction.
