What is Pi Coin? A Deep Dive into the Controversial Cryptocurrency
Pi Coin has become one of the hottest topics in the world of cryptocurrency, but with all the buzz comes a fair share of controversy. Despite its ambitious promises and a growing user base, the project faces serious criticism, from concerns over centralization to skepticism about its tokenomics. Let’s take a closer look at Pi Network and explore what makes Pi Coin unique, as well as why it’s generating so much discussion.
What is Pi Network?
Pi Network is a digital currency project that aims to make cryptocurrency accessible to everyone, even those without high-end mining equipment. Founded by three Stanford graduates — Nicolas Kokkalis, Chengdiao Fan, and Vince McPhillip — Pi Network has been in development since 2019. The concept is simple: allow people to mine cryptocurrency directly from their smartphones.
However, as straightforward as the concept might seem, the reality of Pi Network has drawn criticism, particularly in 2025, as the project approaches a critical point in its evolution.
The Pi Coin Controversy
Though Pi Network claims to have over 60 million users, blockchain data tells a different story. The actual activity on the network seems to fall far short of this figure. Additionally, the project’s inflationary tokenomics and heavy reliance on a centralized control system have led to concerns over the future viability of Pi Coin as a decentralized currency. As Pi Network transitions toward its “open network” in 2025, it will be interesting to see whether the project can live up to its promises.
Pi Network’s Timeline: A Journey of Phases and Milestones
Since its launch in 2019, Pi Network has gone through several phases:
- March 14, 2019 – Official Launch: Pi Network was officially launched on Pi Day, symbolizing the mathematical constant π (3.14). The app allowed users to start mining Pi coins directly from their phones.
- March 14, 2020 – Testnet Phase: The first anniversary of Pi Network marked the beginning of the Testnet phase, where the project focused on decentralizing its network by deploying distributed nodes and allowing community developers to build applications.
- Late 2020 – Node Program Introduction: Pi Network introduced a node program, enabling users to operate network nodes on personal computers, further promoting decentralization.
- December 2021 – Enclosed Mainnet Launch: Pi Network transitioned to its Enclosed Mainnet phase. During this time, users could migrate their Pi coins to the mainnet, but the network was not yet open to the public.
- October 2023 – Roadmap Announcement: The Pi Core Team shared a roadmap detailing past milestones, ongoing projects, and plans for the Open Mainnet launch.
- December 2024 – Open Network Update: Originally expected by the end of 2024, the Open Mainnet launch was postponed to early 2025 to allow more users to complete the Know Your Customer (KYC) verification process.
- January 2025 – Mainnet Migration Progress: By January 2025, over 18 million users had completed KYC, and more than 8 million had migrated their tokens to the mainnet.
Pi Coin vs. Bitcoin: A Comparison
When compared to Bitcoin, Pi Coin certainly stands out. Bitcoin, launched in 2009, is widely accepted and has a capped supply. Pi Coin, on the other hand, is still in its early stages, and its market value remains uncertain. Here’s a brief comparison:
| Feature | Bitcoin | Pi Coin |
|---|---|---|
| Launch Year | 2009 | 2019 |
| Supply | Capped | Inflationary |
| Mining | Requires expensive hardware | Mobile app-based mining |
| Adoption | Widely accepted | In development |
The Advantages of the Pi Network
Pi Network’s standout feature is its mobile-first approach to cryptocurrency mining. Unlike traditional mining, which requires costly hardware and consumes a lot of energy, Pi Network allows users to mine Pi coins directly on their smartphones without draining the battery. This makes mining accessible to virtually anyone with a smartphone.
Additionally, Pi Network uses the Stellar Consensus Protocol (SCP), which is known for being energy-efficient, decentralized, and fast. However, there are some challenges associated with SCP, such as setting up trust relationships between nodes and the need for a stable internet connection, which can be problematic in areas with poor connectivity.
Despite these hurdles, Pi Network’s ability to combine energy-efficient consensus with its user-friendly platform offers an intriguing alternative to traditional cryptocurrencies.
A Step-by-Step Guide to Mining Pi Coin
Mining Pi Coin is different from what you might expect from traditional cryptocurrencies. Here’s how to get started:
- Download the Pi Network app: Available on both Android and iOS.
- Create an account: Sign up using your phone number or Facebook account and create a strong password.
- Enter an invitation code: Pi Network operates on an invite-only basis. You’ll need an invitation code to join, which can be obtained from a friend or found online.
- Complete your profile: Provide your real name, phone number, and country.
- Start mining: Tap the lightning bolt icon to begin mining. Each session lasts 24 hours, after which you’ll need to tap the icon again to continue.
- Increase your mining rate: Invite friends to join Pi Network using your invitation code to boost your mining rate.
- Build your security circle: Add trusted members to your circle to help secure the network after three days of mining.
Is Pi Coin Legit or a Potential Scam?
The legitimacy of Pi Coin has been hotly debated. Here are some factors to consider:
- User Engagement and Transparency: Pi Network claims over 60 million users, but blockchain data shows fewer than 10 million wallets, with only 20,000 active wallets. This discrepancy raises concerns about the true scale of Pi Network’s adoption.
- Development Delays and Centralization: Pi Network has yet to launch a fully operational mainnet, a delay much longer than similar projects like Ethereum and Cardano. Moreover, all active mainnet nodes are controlled by Pi’s core team, not by the community, which contradicts its claims of decentralization.
- Inflationary Tokenomics: Pi’s rapid inflation — with the circulating supply reaching over 5 billion tokens — has raised concerns about the long-term value of the coin. Without mechanisms to balance supply and demand, this could devalue the token significantly.
- Privacy and Data Security: The mandatory KYC process requires users to submit sensitive personal information, which raises concerns about potential misuse and privacy risks.
- Revenue Model and Advertising: Pi Network relies on in-app advertisements for revenue. While this is common for mobile apps, it raises questions about the project’s actual business model and whether it’s more focused on user engagement than creating tangible value.
The Bottom Line: Is Pi Coin Worth Your Time?
While Pi Network has attracted millions of users and generated significant attention, there are still many unanswered questions about its long-term viability. Its user numbers seem inflated, its development has been slow, and its tokenomics are questionable. These factors make it hard to say definitively whether Pi Coin will become a major player in the crypto world or fade into obscurity.
As with any investment or involvement in cryptocurrency, it’s important to do your own research and understand the risks involved. Pi Network might have a bold vision, but whether it can deliver on its promises remains to be seen.
Disclaimer: This article is not financial advice. Always conduct your own research before investing in any cryptocurrency.
FAQs
- What is Pi Coin used for? Pi Coin is still in its early stages, and its primary use is as a cryptocurrency that can be mined via mobile phones. It’s intended to be used for transactions, though its true utility remains unclear.
- Can I sell my Pi coins? Pi coins are not yet listed on major exchanges, so you cannot sell them for cash at this time. However, that may change when the open mainnet launches.
- Why is Pi Network so controversial? Pi Network has faced criticism for its inflated user numbers, delayed development, reliance on centralization, and inflationary tokenomics. These issues have led many to question its legitimacy.
- Is Pi Coin better than Bitcoin? Pi Coin offers a unique mobile mining solution, but Bitcoin is more widely adopted and has a capped supply. The two coins serve different purposes and cater to different audiences.
- How can I increase my mining rate on Pi Network? You can increase your mining rate by inviting friends to join Pi Network using your invitation code and engaging with the community to stay active in the app.