The PI Network Controversy: Here’s Everything You Need to Know
With millions of community members, Pi Network has been attracting a lot of interest from exchanges and investors alike.
The unofficial listing of Pi currencies has been clarified again by smartphone blockchain mining startup Pi Network, who claim that the coins are not yet ready for trade.
Pi Network was established in 2018 and released its Pi coin in March 2019 for mining by its community members, known as “Pioneers.” Once Pi Network switches to Open Mainnet, these assets can be exchanged.
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Pi Network Disclaimer
The network is now in the Enclosed Mainnet state, which renders any third-party contact “technically impossible.”
On December 29, the blockchain project released a similar statement, noting that it was aware of rumors that several unlicensed exchanges attempted to offer Pi or other items billed as the native coin.
Reiterating that Pi is now in the Enclosed Network and has not received Pi Network’s approval for listing on any exchange or for trading, as well as the fact that Pi Network was not associated with any of these alleged postings or listings, was crucial, the December 29 release stated.
What is the whole ruckus?
The Pi Network, which claims to have 35 million users mining Pi currencies on its mobile blockchain mining software, is getting ready to go to the open mainnet. To onboard its members to the advanced network where they may trade their PI coins, it is now conducting its KYC.
Influencers and Pi Network members have recently promoted Crypto exchanges and investors alike are very interested in the impending open main net attack on social media. The network announced on November 15 that it had surpassed 20 lakh Twitter followers, a sign of its increasing popularity.
However, Pi Coins aren’t formally offered for sale or listing. Those that are interested should sign up for my network.
Some cryptocurrency exchanges have added Pi Coin on their sites in anticipation of the asset’s future becoming more promising. Huobi for Justin Sun is one of them. was a tweet from Justin Wu, a crypto-journalist.
What Is the Pi Network?
The Pi Network, which was established in 2019 by Stanford University students Nicolas Kokkalis and Chengdiao Fan, consists of an app, a token, and, controversially, an MLM program.
The service is marketed as one that makes cryptocurrency mining simpler by enabling mining on smartphones via the Pi Network website. Additionally, it is asserted on the website that you may accomplish this without significantly depleting your battery.
You probably already know that cryptocurrency mining typically necessitates pricey specialized equipment that consumes electricity at an almost outrageous pace. Many people avoid crypto mining due to the high cost, but the Pi Network has drawn a lot of attention since it supports smartphone mining.
On the Pi Network app, you may mine cryptocurrency and keep track of your stats. Both Android and iOS users may get this software for free. To further understand the Pi Network, let’s examine this software’s features.
The Pi Network App
After downloading the Pi Network app, you must create an account using either your Facebook account or phone number. You’ll also need to establish a username and a password for your account, and enter your first and last names. After that, you may use the program by following the brief instruction that is given.
As you can see above, the Pi app is quite simple, but that doesn’t always mean it’s bad. Using the app’s menu, you can rapidly monitor your mining revenues, read the whitepaper for the Pi Network, and go through the FAQs. You must interact with the Pi Network app once every 24 hours to keep mining with it.
As soon as you log in to the Pi app, you’ll see that invitations and recommendations play a crucial role in the network. You are asked if you were invited when you join up, and after you are signed in, you may use your invite link or code to introduce people to the Pi Network. The focus on invitations arises from the fact that you can only mine Pi coins if someone else has invited you to the app. Additionally, you may increase your Pi by inviting members.
On the Pi Network app, you may play a variety of roles. A Pioneer may mine Pi every day by touching the mining button on the app once every 24 hours. You must invite three to five people to a secure circle as a Contributor to receive an extra 0.2 PI every hour. You must use your referral code as an Ambassador to welcome new users to the app. You receive a 25% mining bonus for each new member you bring on board.
What Is the Pi Cryptocurrency?
The Pi cryptocurrency, which can be mined using the Pi software, is the native coin of the Pi Network blockchain. Pi appears on a blockchain since it is a coin. The Stellar Consensus Protocol, which was initially created for the Stellar (XLM) blockchain, is the consensus mechanism used by the Pi blockchain.
At the time of writing, one Pi coin is worth around $58; however, it’s crucial to remember that cryptocurrency prices are dynamic and always subject to increases and decreases. Additionally, at the time of writing, PI is highly volatile, with daily movements occasionally surpassing ten dollars, which represents a sizeable portion of the asset’s total worth.
Is the Pi Network Safe? Is Pi Network a Scam?
It is often debated whether or not the Pi Network is a multi-level marketing program (MLM). Instead of having new recruiting handled by workers who are directly engaged by the organization, multi-level marketing schemes require individuals to make contact with and hire new members (or employees) themselves. The motivation in this case is the promise of more Pi coins in return for recruiting new members, which is also the reason why many people wonder whether the Pi Network is a pyramid scam.
The fact that you cannot withdraw your mining money from the Pi Network mining plan is another very dubious aspect of it (at the moment). This is a result of the Pi Network’s present Enclosed Mainnet configuration. There is no set date for when the Pi Network will start, even though the network’s creators promise that Open Mainnet will be added in the future.
Additionally, there are no exchanges that list the Pi asset, which may lead you to doubt the project’s validity. However, this is due to the Pi Network now being in Enclosed Mainnet as opposed to Open Mainnet. If you’re interested in this asset, you should be aware of certain exchanges listing Pi without the proper authorization. The Pi Network issued a warning regarding these exchanges in late 2022.
What is the Whole Fuss About?
Pi Network is planning to switch to Open Mainnet. According to the company, there are roughly 35 million members who have been mining Pi coins using its smartphone-based blockchain mining program. To onboard its members to the updated network where they may trade their Pi coins, it is now completing its KYC.
Recently, Pi Network users and influencers have been aggressively advertising the impending Open Mainnet on social media, which has attracted a lot of attention from both investors and crypto exchanges. The network announced on November 15 that it had surpassed two million Twitter followers, an indication of its rising fame.
However, officially, neither listing nor buying Pi coins is permitted. To mine them, interested parties must sign up for the network.
Some cryptocurrency exchanges have added the Pi coin on their platforms in anticipation of the asset’s future becoming more promising. According to a tweet from cryptocurrency writer Justin Wu, one of them is Justin Sun’s Huobi.
The project team reiterated in their statement from January 6 that in its Enclosed Mainnet state, the network is protected by a firewall and that no exchange or third party is permitted to engage with it without authorization, which was not the case.
“Pi Network has no affiliation with any of these exchanges, which are working independently from the network’s permission, control, or cooperation. Additionally, the goods offered for sale on these platforms are not genuine Pi tokens, it continued.
The fact that Alameda Research frontman tokens before their placements on exchanges follow reports of several exchanges’ unlawful listing of alleged Pi coins.