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- Pi Network allows smartphone-based crypto mining without energy-hungry hardware.
- It uses Stellar’s SCP protocol for eco-friendly transaction validation.
- PI coins are only tradeable on select CEXs, not decentralized platforms.
- KYC process raises privacy concerns over ID verification by regional validators.
- Despite the hype, Pi’s delayed mainnet and volatile prices create skepticism.
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Pi Network and Pi Coin (PI) are among the most controversial projects.
With millions of Pi community members “mining” on their phones and a supposedly growing ecosystem, the big question remains – what's the reality? Let's cut through the noise, separate facts from fiction, and uncover what lies beneath the hype.
As of March 2025, Pi Network has succeeded in creating over 11.5 million accounts, with its pioneer holding almost 1.3 billion Pi Coins. Interestingly, over 5 billion PI tokens are locked for a lockup period ranging from zero to three years.
In response to growing interest, Binance conducted a community vote to decide whether to launch Pi Coin on their exchange. During the vote, which required participants to cast a simple "Yes" or "No" – 86% of the approximately 295K users supported listing PI on Binance.
What is Pi Network?
In traditional blockchain systems, mining isn't for the faint of heart. Participants (specialized computers/programs) validate transactions by solving complex mathematical puzzles, which demand specialized, high-powered hardware, consume enormous amounts of energy, and require technical knowledge.
In short, it's a game reserved for the few, leaving the average person on the sidelines. Moreover, the environmental impact of energy-intensive mining has drawn criticism, further alienating those who seek sustainable and inclusive alternatives.
To break this complex tradition, Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, two Stanford PhDs who recognized these barriers and decided to shake things up, introduced Pi Network in 2019. This decentralized blockchain lets anyone mine crypto on a smartphone. No expensive rigs, no sky-high electricity bills, just a tap on your screen to start earning.
Owing to its network effects, Pi Network amassed a massive user base that many crypto projects only aspire to. For example, its Android app on Google Play has over 100 million downloads with an impressive 4.5-star rating from more than 840K reviews. This kind of adoption signals strong grassroots engagement.
How Pi Network Works
Pi Network uses an efficient algorithm adapted from the Stellar Consensus Protocol (SCP). This consensus protocol is a system designed to enable nodes in a blockchain network to work together and agree on which transactions to record securely and efficiently.
The Federated Byzantine Agreement (FBA) model allows a wide range of nodes to secure the ledger without relying on energy-intensive mining. Unlike the Proof of Work (PoW) mechanism, this approach enables transaction validation with minimal resource consumption, making it eco-friendly and accessible to everyday users.
SCP operates by relying upon a cooperative validation process among trusted nodes. Here's a breakdown of how it functions:
- When a transaction is submitted, certain nodes suggest it for approval.
- Each node is connected to a trusted set of other nodes, known as a quorum slice, which helps verify transactions.
- Once a sufficient number of these trusted nodes validate the transaction, it gets approved and recorded on the blockchain.
- Since multiple trust groups overlap, the system maintains security and fairness in transaction verification.
In the case of PoW, blockchain nodes work to solve complex mathematical puzzles in the mining process, whereas PI mining functions on its distributed trust graph. Each mobile miner's security circle merges into a global trust network that powers Pi's consensus algorithm.
Mining PI is not about solving complex puzzles but strengthening the network's security and reliability. By forming these interconnected trust groups, mobile miners play a key role in securing the Pi Network ledger and ensuring smooth transaction validation.
How to Get Started with Pi Today?
The following steps outline how Pi Network enables users to start crypto mining.
Step 1
Install the Pi Network app on Android or iOS devices from Google Play or App Store, respectively.
Step 2
Log into the app using a phone number or Facebook account.
Step 3
Start mining by tapping the mining icon on the app's home screen.
Step 4
Add more people to the Pi Network security circle to boost the mining rate.
How to Complete Pi Network KYC?
Step 1
Tap the hamburger icon on the top left side of the app's home screen.
Step 2
Then tap the "Mainnet" section from the listed section.
Step 3
Then tap on the "Mainnet Checklist."
Step 4
Select the 7th option listed, "Submit your KYC Application," and you'll be redirected to the Pi browser to initiate the KYC procedure.
Step 5
The KYC section includes selecting the user's native country, choosing a verifiable ID (passport recommended), submitting ID photos, and filling out a form with ID information such as the ID number, expiry date, and other details.
After submitting the KYC details, users must await the results. The Pi Network team verifies the user's account and submits documents to ensure compliance with government AML regulatory compliance, anti-terrorism sanction lists, and potential policy violation history.
After a successful Pi Network KYC verification, verified users are automatically included in the "Migration Queue." After that, the user's transferable balance will be available in their PI wallet provided.
Pi Community Referral Mechanism
Pi Network has a referral system that benefits the person inviting others (the referrer) and the person joining (the referee). Every time someone joins Pi Network through a referral link, a fixed amount of PI is minted and shared between the referrer and the referee.
This reward system isn't a one-time reward, and both parties can continue to earn from this shared pool as long as they remain active in the Pi Network. The idea behind this is to encourage long-term, sustainable participation rather than promoting exploitative, pyramid-style systems where early adopters reap all the benefits.
‘Pioneers’ can lock up their Pi Coin voluntarily and boost their mining rate. The more they commit, the greater their potential rewards. However, there is a cap. The maximum Pi they can lock up is double the amount they transferred to the Mainnet from their previous mining efforts in the mobile app.
Where to Sell Pi Coins?
According to the Pi Network's roadmap, it is still in the enclosed main net stage, where a firewall restricts unwanted external connectivity. As a result, their digital currency, Pi Coins, is unavailable on DEXs, requiring users to connect with external wallets.
PI is officially listed on CEXs like OKX, Bitget, MEXC, Gate.io, CoinW, etc. Together, they constitute over 83% of the total Pi Coin trading volume.
Users can sell PI to USDT, USD, TRY, EUR, BRL, and others based on their preference. USDT trading pairs showcase high trading volume post-token listing.
Performance of Pi Price: A Historical Analysis
Pi IOU (I Owe You) tokens gained popularity as the Pi ecosystem user base surged, fueled by viral social media buzz. These IOU tokens are mere placeholders until the mainnet launches.
The app users closely watched Pi IOU prices to compare their mined Pi coins and estimate the potential value of their tokens. According to CoinStats data, the price of IOU peaked at $307.49 in December 2022 (a laughable overestimation looking back).
However, despite all price speculation, PI plummeted to an all-time low USD price of around $0.61 on its launch day, February 20, 2025.
Soon after, its price began to recover, surging to a new all-time high of $2.98 on February 26, 2025 before sinking back to sub-one-dollar in March.
Pi Network's Major Controversies
After six years in development, Pi Network still hasn't launched a fully operational mainnet, and the tokens are only tradeable on CEXs (which goes against the ethos of decentralized finance). To put this delay in perspective, DeFi-defining projects like Ethereum and Cardano went live within two years.
Ben Zhou, CEO of Bybit, called Pi Network a scam and refused to list it. In a post on X, he shared a Chinese police warning about scams involving Pi coins and cited multiple reports questioning the project's legitimacy.
Pi Network's mandatory KYC-based human verification process used to authenticate user identities sparked major privacy concerns. Global citizens must submit sensitive personal data and government IDs, which are processed by regional validators, increasing the risk of misuse or identity theft.
Conclusion
The mobile mining concept put forward by the Pi Network has undoubtedly generated a lot of hype among users. Still, several red flags remain, from the prolonged enclosed mainnet and referral-based network growth model to growing concerns over data privacy.
Whether users stick with PI mining, trading, or investing, staying informed is key to safeguarding their capital and privacy. The crypto space is unpredictable, so proper research, realistic expectations, and informed decisions are essential.
