What is Pi Coin?
Pi Network, one of the most controversial projects of 2025, promises mobile cryptocurrency mining but has faced criticism for its centralized control, inflated user count, and inflationary tokenomics.
Everyone is talking about Pi Coin. Perhaps the most controversial project of 2025.
On the surface, Pi Network is a digital currency and decentralized finance project developed by Stanford graduates Nicolas Kokkalis, Chengdiao Fan, and Vince McPhillip. The product, which has been in development since 2019, is built on the premise that anyone should be able to mine cryptocurrency through a mobile application.
But dig deeper and the project faces ongoing criticism. For example, Pi Network claims to have over 60 million users globally, but blockchain data suggests there is a significant discrepancy between these numbers and actual activity.
Additionally, the project’s inflationary tokenomics, centralization of control, and reliance on advertising revenue have led to criticism that it prioritizes user monetization over decentralization and innovation.
With the transition to an “open network” expected in the first quarter of 2025, the ecosystem is approaching a pivotal moment that will generate ongoing buzz: a test in the gladiator ring.
Did you know? Before co-founding Pi Network, Nicolas Kokkalis created an early framework for writing “smart contracts” for fault-tolerant distributed systems during his PhD. I worked at Stanford University before the introduction of blockchain and Ethereum.
Pi Coin: Timeline of Key Events
Pi Network, which was first launched in 2019 for smartphone-based cryptocurrency mining, has evolved through various stages, including testnet, node program, and closed mainnet. We are currently transitioning to an open network through mainnet migration in early 2025.
- March 14, 2019: Official release – Pi Network was officially launched on Pi Day (March 14), which symbolizes the mathematical constant π (3.14). The initial version of the mobile application allowed users called “Pioneers” to mine Pi cryptocurrency directly from their smartphones.
- March 14, 2020: Testnet phase begins – Pi Network celebrated its one-year anniversary by launching its testnet phase, taking an important step towards decentralization. This step enabled us to deploy decentralized nodes around the world, allowing community developers to test the blockchain and create utilities using Test-Pi.
- Late 2020: Node program introduced – Pi Network introduced the Node program, which allows users to operate network nodes on their personal computers. Through this initiative, Pioneers has been able to contribute to network security and transaction verification and promote decentralization.
- December 2021: Closed mainnet launch – The Pi network has moved to a closed mainnet phase, with the mainnet active but with a firewall blocking external connections. During this time, users were able to complete know-your-customer (KYC) checks and migrate their Pi to the live mainnet blockchain, while the community built apps and utilities within the closed network.
- October 2023: Roadmap announced – The Pi Core team released a milestone-based roadmap outlining past achievements, ongoing projects, and future efforts. This roadmap provides transparency and details the steps leading to an open mainnet.
- December 2024: Open Network Update – The Pi Network team announced that the open mainnet launch, originally expected at the end of 2024, will be postponed to the first quarter of 2025. This decision is to allow more users to complete KYC verification and migrate their tokens to the mainnet. A more inclusive and secure ecosystem.
- January 2025: Mainnet migration in progress – By January 2025, Pi Network had over 18 million KYC verified users, with over 8 million having migrated their tokens to the mainnet. The team has extended the KYC and mainnet migration grace period deadlines to 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 limited supply. PiCoin, launched in 2019, offers mobile app-based mining and aims for broader accessibility, but it is still in its early stages and its market value is uncertain.
Pi Coin is definitely breaking the mold of traditional cryptocurrency. To understand this better, let’s look at the table below.
Advantages of Pi Network
The Pi Network allows users to mine Pi Coins directly on their smartphones, removing traditional barriers such as expensive mining equipment or access to banking services.
The simple design not only simplifies the mining process, but also encourages more people to explore Web3 technology, making cryptocurrency more accessible to more people.
The Pi network also uses the Stellar Consensus Protocol (SCP), which provides benefits such as energy efficiency, distributed control, and fast transaction speeds.
That said, SCP presents several challenges, such as the complexity of establishing trust relationships between nodes and its dependence on stable network connections, which can be a disadvantage in areas with limited connectivity.
Despite these obstacles, we can see how Pi Network aims to combine the strengths of SCP with a user-centric approach to create a platform that can provide more comprehensive, scalable, and sustainable digital currency solutions.
Did you know? The Pi Network allows users to “mine” Pi Coins on their smartphones without draining their batteries or using significant computational resources. This is possible because the actual work of verifying transactions and securing the blockchain is handled by special computer nodes running SCP.
Step-by-step guide to mining Pi Coins
The way Pi Network approaches mining is a standout feature. But with an ‘invitation-only’ system reminiscent of 2020’s Clubhouse, things may not be as simple as you think.
Let’s 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 up using your phone number or Facebook account.
- Choose a unique username and set a strong password for security.
- Enter your invitation code:
- Pi Network operates on an invitation-only basis to build a trusted community.
- To sign up, you’ll need an invitation code from an existing user. If you don’t have the code, you can search online or ask a friend who is already using Pi Network.
- Complete your profile:
- Please enter your real name as it will be required for future verification processes.
- Select your country and enter a valid phone number to recover your account.
- Start mining:
- Once you’ve set up your account, you’ll see a lightning bolt icon on your home screen.
- Tap the lightning bolt to start your first mining session.
- Each mining session lasts 24 hours. After that, you need to open the app and tap the lightning bolt again to continue mining.
- Speed up your mining:
- Invite your friends and family to Pi Network using your unique invitation code.
- Mining speed increases for each active referral.
- Join the Pi Network community and participate in discussions to stay informed and potentially further increase your mining speed.
- Build a security circle.
- After mining for 3 days, you can increase your network security by adding trusted members to your security circle.
Did you know? Your daily participation is very important to the Pi network when it comes to maintaining active mining. Don’t forget to log in and tap the lightning bolt every 24 hours.
Is Pi Coin legit or could it be a scam?
As you’ve read so far, you’ve probably noticed a number of red flags that could lead you to the question above. Here’s the truth: Pi Network claims to democratize access to cryptocurrency through a mobile mining platform, but several factors call into question the authenticity and long-term viability of Pi Network.
Let’s learn more about these factors.
1. User participation and transparency issues
Pi Network reports a user base of over 60 million people worldwide. But blockchain data suggests otherwise. Blockchain explorers like ExplorePi only report 9.11 million wallets, which is only 15% of their claimed user base.
Moreover, only about 20,000 wallets show daily activity, indicating a significant gap between reported and actual engagement. This discrepancy, caused by the lack of an open mainnet, raises questions about the reliability of user statistics and the actual scale of adoption.
2. Development delays and centralization
Despite six years of development, Pi Network has yet to launch a fully functional mainnet. This timeline far exceeds that of similar projects, such as Ethereum and Cardano, which achieved functional mainnets in less than two years.
Adding to these concerns is the centralization of networks. All active mainnet nodes are controlled exclusively by the Pi core team, which contradicts the claim of decentralization. The project promises ultimate decentralization, but its current structure raises doubts about its commitment to this principle.
3. Inflation concerns and token economics
Pi Network’s economic model further undermines its legitimacy. The network experienced rapid inflation, with the supply of Pi tokens doubling in just one year.
As of January, circulating supply reached 5.56 billion tokens. Without a mechanism to balance supply and demand, this inflation would significantly reduce the value of the token, eroding confidence in its long-term sustainability.
4. Privacy and data security risks
Pi Network’s mandatory KYC process raises serious privacy concerns. Users are required to submit sensitive personal data, including selfie videos and government-issued identification. This data is processed by local validators, increasing the risk of potential misuse or identity theft.
5. Profit model and advertising
The project’s reliance on in-app advertising raises additional questions. Pi Network claims that advertising helps cover operating costs, but its minimal energy requirements suggest otherwise. Pi Network also uses psychological strategies to keep users engaged. These tactics are effective at maintaining engagement, but they can obscure their lack of real usefulness and output.
So while Pi Network has achieved notable growth in terms of user numbers and visibility, operational and structural issues have cast an undeniable shadow.
The door to reliability is therefore only partially open.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.