What is Pi Network?
Despite facing numerous delays, unclear operations, and widespread doubt, Pi Network retains a dedicated following.
Critics have labeled the project as “money-driven,” pointing to its use of in-app ads, referral growth, and centralized token control. Some even suggest that its KYC (Know Your Customer) requirements might lead to the monetization of personal user data.
The core question remains: How does a supposedly mobile-mined cryptocurrency, criticized for its limitations and bottlenecks, keep millions engaged daily?
Founded in 2019 by Stanford graduates, Pi Network aimed to revolutionize crypto mining. Rather than relying on energy-intensive hardware, users “mine” Pi (PI) coins through a mobile application.
The project utilizes the Stellar Consensus Protocol (SCP) and social “security circles” instead of proof-of-work (PoW), promoting broader inclusivity over hash-power competition.
In February 2025, Pi finally launched its long-anticipated mainnet for external trading and token transfers, years after the initial commitment.
However, the rollout experienced setbacks. Delays in migration, KYC backlogs, and uneven access led to widespread frustration. Nonetheless, excitement remained: A short rally drove Pi’s price up to nearly $3 before it fell to about $0.34 by September 2025.
Thus far, Pi Network has managed to maintain significant enthusiasm despite increasing operational and structural challenges.
Did you know? The first mobile “mining” trend wasn’t Pi. In 2017, a project called Electroneum promised smartphone mining but lost traction once exchanges showed disinterest.
Criticisms and red flags
Even with a high daily user count, critics assert that Pi Network is built on a shaky foundation.
Centralization and core team control
While Pi presents itself as an “open network,” control remains tightly held by its core team. All validator nodes are run by the project’s developers, not by independent community members. This undermines the decentralization ethos that underpins most cryptocurrencies.
Opaque tokenomics and distribution
Pi has a capped supply of 100 billion tokens, divided into four categories: 65% for community mining rewards, 20% for the core team, 10% for foundation reserves, and 5% for liquidity. Although it appears straightforward on paper, actual circulation depends on the number of coins transferred to the mainnet. Each category unlocks in conjunction with verified Migrated Mining Rewards (MMR).
Referral-based rewards with MLM parallels
Mining Pi relies heavily on referrals and “security circles.” Critics claim that this layered recruitment approach mirrors multi-level marketing schemes, raising sustainability concerns as new-user growth slows.
Limited listings and liquidity issues
Following the February 2025 mainnet launch, Pi’s trading opportunities remain restricted to mid-tier exchanges like OKX, Gate.io, Bitget, and MEXC. Major platforms, including Binance and Coinbase, have refrained from listing, citing unresolved issues related to tokenomics and centralization.
Volatility and suspicious token activity
Pi’s market performance has been lackluster: dropping from early 2025 highs near $3 to approximately $0.34-$0.35 as of September 3, 2025 (a 90% decline). Meanwhile, a wallet identified as “GAS…ODM” has been quietly accumulating 331 million Pi coins, raising suspicions of insider-driven activities.
Privacy risks from centralized KYC
To transfer mined Pi onto the Mainnet, users must pass Know Your Customer (KYC) verification. This requires uploading a government-issued ID and completing a facial recognition “live selfie” verification. Reports suggest that this data is stored on centralized servers instead of user-controlled systems, raising concerns regarding privacy and security.
These concerns are not new: previous allegations regarding problems with third-party KYC providers have sparked ongoing questions about how Pi manages sensitive user information and whether adequate safeguards are implemented.
Did you know? Recent web analytics indicate minepi.com’s top visitors by country: Vietnam (10.2%), South Korea (8.2%), India (6.66%), the United States (6.6%), and Ethiopia (5.2%).
Why the hype persists
Free mining options, social reinforcements, and steady ecosystem indicators help sustain millions’ emotional investment (even as critics highlight liquidity issues, limited listings, and centralization).
Low barrier to entry, minimal financial risk
Mining Pi requires attention rather than capital investment. Users merely need to open the app once per session to confirm activity (no GPUs, no electricity costs).
This approach reduces perceived risk and makes the network accessible to anyone with a smartphone. Layered incentives, such as referral boosts (25% for each active invite) and security circles (up to a 100% bonus), gamify the experience, transforming casual tapping into noticeable progress.
Accessibility and mobile-first design
Pi positions itself as “crypto for the smartphone age.” Participation is streamlined to a one-tap routine rather than complex wallets and mining rigs. Analysts emphasize this as Pi’s primary innovation: converting non-technical, underbanked, or crypto-curious individuals into active participants through a lightweight, energy-efficient system (SCP over PoW).
Community identity as momentum
Community labels carry weight. Pi users refer to themselves as “Pioneers,” and routine activities like daily taps, referrals, and team building foster social cohesion.
Initiatives such as PiFest and “Map of Pi” reinforce engagement, providing participants with a sense of belonging. Even if the claim of “60M users” is contested, verified activity surrounding 12 million accounts is still substantial within crypto metrics.
Experiment and hope over immediate utility
The project’s narrative is intentionally long-term: prioritize building the user graph first, then expand utility. This order allows setbacks like migration delays or limited listings to be reinterpreted as temporary challenges. For believers, the vision takes precedence over immediate realities.
Signals of ongoing evolution
Momentum is sustained through ecosystem signals: hackathons, developer grants, and builder funds. While these aren’t finalized products, they offer the community milestones to discuss and track, helping maintain engagement amid market fluctuations.
Did you know? By 2025, there are over 6.9 billion smartphones in circulation globally, indicating that mobile-first crypto projects like Pi may target a larger market than Bitcoin wallets, which number around 460 million.
What to watch next
Pi’s longevity has never rested on short-term pricing. The true challenge lies in its ability to transform mass interest into a viable open-network utility.
For watchers, the key indicators to monitor are clear:
- Decentralization in practice: Demonstrating that “open network” extends beyond mere rhetoric. Independent validators and genuine integrations (beyond just in-app messaging) are crucial.
- Listings and liquidity: Price discovery and user confidence will remain limited until a major exchange like Binance engages with the network.
- Ecosystem delivery: Funded events, live applications, and active use are far more relevant than blog posts.
- KYC and migration progress: Transparent, increasing numbers of on-chain users will form the foundation of any functional economy.
If these indicators progress, Pi’s excitement could evolve into tested utility. If they stall, belief (rather than fundamentals) will remain the project’s primary asset.
