Tokenomics, Launch Price & Major Developments

• Pi Network’s upcoming launch faces scrutiny over tokenomics, data leaks, and pyramid scheme accusations, raising concerns about its future.
• Pi Coin’s speculative price and regional trading restrictions highlight ongoing uncertainties ahead of its mainnet launch on February 20, 2025.

Pi Network has gained attention in the crypto market due to its upcoming launch on February 20, 2025. As one of the most anticipated events in the crypto world, the launch has sparked widespread speculation about the future price and potential impact of Pi Coin.

Despite its rapid growth and large user base, the project has faced scrutiny, with issues surrounding its tokenomics, data leaks, and regulatory challenges. Pi Coin’s tokenomics reveal a highly structured distribution model. The total supply of Pi is capped at 100 billion tokens, allocated across various categories to ensure the growth and sustainability of the ecosystem.

According to a CNF report, approximately 65% of Pi’s total supply, or around 65 billion tokens, is reserved for mining rewards. These rewards are distributed to users who actively contribute to the network by engaging in mobile mining, referring new users, or running nodes.

Around 10 billion Pi tokens are set aside to boost network development. These tokens will support community-driven projects, such as decentralized applications (dApps) and other initiatives to enhance the Pi network. Additionally, 5 billion Pi are allocated to a liquidity pool, which will provide liquidity for transactions within the network.

The remaining 20 billion Pi tokens are allocated to the Pi Core Team as compensation for their development efforts and the ongoing maintenance of the network. This allocation is tied to a repayment schedule to ensure the team remains committed to the project’s long-term success. As of December 2024, approximately 562 million Pi coins had been unlocked, with many users choosing to lock up their tokens for extended periods, including opting for a three-year lock-up.

Pi Network and Data Leak Controversy

In May 2021, Pi Network was involved in a data leak dispute. Reports claimed that approximately 17 gigabytes of personal information, including identity card numbers, home addresses, phone numbers, and email addresses, had been compromised. The leak allegedly involved around 10,000 Vietnamese citizens, with claims that the data had been sourced from Pi Network.

However, the project denied these allegations, claiming that the third-party Know Your Customer (KYC) service provider, Yoti, handled such processes and did not store sensitive data, such as Vietnamese identity card details, on its servers. Additionally, an internal investigation by Pi Network confirmed no evidence of a data breach. Yoti also denied involvement in the leak, further distancing themselves from the issue.

Pi Network or its third-party KYC provider has nothing to do with the recent alleged data leak of Vietnamese national IDs.

Pi Network never asked for or collected such data and our third-party KYC provider does not accept this type of ID documentation. pic.twitter.com/8YUOyljay8

— Pi Network (@PiCoreTeam) May 21, 2021

Adding to this sentiment, Pi Network has also faced accusations for its referral-based system, which some have likened to a pyramid scheme. The platform’s structure rewards users for recruiting new participants, raising concerns that it operates similarly to a multi-level marketing (MLM) scheme. In July 2023, as reported in our previous report, authorities in China labeled Pi Coin as a scam, citing the hierarchical invitation mechanism that benefits those who recruit more users.

The model has drawn attention for its similarity to pyramid schemes, which are illegal in many jurisdictions, including China. While Pi Network has implemented restrictions on trading in certain regions, including mainland China, the allegations persist. Individuals argue that the project’s business model poses legal risks and raises doubts about its long-term sustainability.

Pi Coin Launch Price and Trading Controversies

The price of Pi Coin remains speculative ahead of the mainnet launch. According to a CNF report, the current over-the-counter (OTC) price for Pi is approximately $2 per token, with an IOU (I owe you) price of about $64. However, the pricing could change once the token becomes officially tradable.

Moreover, the crypto exchange OKX, which plans to list Pi Coin, has also introduced an isolated listing mode that could restrict access in certain regions. This has caused frustration among Pi miners, particularly in regions like China, where the project’s reputation has already been tarnished.