Is Pi Network Legit or Scam?

Pi Network is a “legit” cryptocurrency project that is still in development. The project has drawn criticism due to its relatively slow rollout of new features, the open mainnet launch delays, and the slow KYC process. Due to these reasons, some users believe that the project won’t ever live up to its full potential, with some going as far as calling it a scam.

Pi Network aims to build a P2P decentralized payment network and smart contract framework that can be secured by low-powered hardware, such as smartphones. As of September 2023, the network has more than 47 million users, with the Pi app being one of the most downloaded crypto applications in iOS and Android app stores.

In this article, we are going to examine the current state of the Pi Network and provide our opinion on whether Pi Network is legit or a scam.

Is Pi Network legit? Arguments in favor of Pi crypto

There are several indications that support the claim that Pi Network is legit. First of all, the Pi Core Team is mostly transparent about the development status of new features and has clearly outlined the goals of the cryptocurrency in the comprehensive whitepaper. Secondly, Pi Network has millions of users and is constantly adding new features to the platform. Finally, the network’s mainnet is live and slowly getting prepared for external connectivity. Let’s explore each of these arguments in more detail.

A comprehensive white paper and documentation

Pi Network has a very comprehensive whitepaper that outlines the project’s goals and plan of action. The first edition of the whitepaper was released in March 2019. The second version, which includes chapters on the token model and mining and roadmap, was published in December 2021. In addition to the whitepaper, the official Pi Network homepage provides ample information on Pi Blockchain, node operations, and other products and services on the Pi platform.

While Pi Network’s level of documentation is not on par with projects like Ethereum or Cardano, for instance, it’s still way more comprehensive than thousands of other projects in the crypto space. It’s true that doesn’t guarantee legitimacy in itself, it indicates that the project is more likely to be legit than a scam.

High adoption with millions of users

As of this writing, Pi Network has a 47 million strong global userbase. A big part of the reason for the high number is undoubtedly the fact that users can earn Pi coin rewards in exchange for completing tasks in the mobile app and referring their friends and family. Still, if the application was a scam, or users would start complaining about suspicious activity on their devices or user data breaches, the application would never reach the high number of users it has today. 

The Pi Network app has been downloaded over 50 million times, making it one of the most popular crypto apps in the world. Image source: Google Play

The Pi app has more than 50 million downloads on Android devices alone, with an average rating of “4.4”. The relatively high rating speaks to the application’s popularity and users’ general satisfaction with the app. 

Pi Network’s blockchain activity

Pi Network’s testnet and mainnet are both very active. There are, on average, 200 transactions per minute executed on the testnet and about 20 on the mainnet. The number of transactions on the mainnet will likely increase significantly after the mainnet leaves the “Enclosed Period” state and gains external connectivity. As things currently stand, the Pi mainnet is closed to external sources, meaning that it runs behind a firewall that prevents, as the team puts it, any unwanted connections. 

Is Pi Network a scam? Arguments against Pi crypto

Critics of the Pi Network claim that the team has no intentions of launching the open version of the Pi mainnet, citing the lack of updates coming from the Pi Core Team as the main reason for their concern. Also, the slow speed of the KYC process and high personal data requirements are making some users on social media think that Pi Network is not legit.

Pi Network’s open mainnet launch delays and lack of communication from the Pi Core Team

The so-called “Open Network Period” on the Pi Network was initially slated to start in 2022, although the team did state that it could be going live later. As of this writing, more than a year after one of the target dates, there is still no information available regarding the opening of the mainnet. There is speculation that the Pi Core Team is planning to unveil a detailed roadmap, along with a target date for the Open Network in September, but that has not been confirmed.

The launch of the Open Network Period, which would provide external connectivity and likely make Pi coin trading possible, is running more than a year late. Image source: Pi Network

The Pi team claims that it is hesitant to open the mainnet to provide enough time for developers to adapt their apps for the mainnet and give users time to transfer their PI from the testnet to the mainnet. There is a contentious debate going on in the Pi Network community circles whether the Pi team is delaying the launch of the Open Network Period due to listed concerns or it’s just buying time and has no intention of actually opening the mainnet.

Another aspect of open mainnet delays that some users find frustrating is the lack of information coming form the Pi Core Team. Many members of the community have expressed their discontent with the slow trickle of information that is served to the community and fear that the Open Network Period will never see the light of day.

No way to trade Pi coins, and a slow KYC process

Four years after the launch of the Pi app that gave users the ability to mine Pi coins, there is still no way to trade real Pi coins. Some exchanges – like Huobi and Bitmart – have listed PI, but that are just IOU versions of the token and not the real deal. In fact, the Pi Core team has warned its users against participating in transactions. If you send your PI coins to these exchanges, you might lose them forever, as they don’t support the Pi blockchain.

Latest News: Regarding the announcement of the launch of #PiNetwork on Huobi Exchange, it is also not authorized by PiCT! Remind everyone to understand that Pi has not opened the main network yet, please do not participate in the transaction, so as not to be deceived!

Danger!? pic.twitter.com/Y0DfzGRdqY

— Pi News (@PiNewsMedia) December 29, 2022

However, these IOUs do give us insight into Pi Network’s price potential. In the past month, the price of PI surged on news of new developer initiatives and potential roadmap updates. 

Other than IOUs, Pi Coin can theoretically be traded in the P2P manner, both online and offline. However, you must first complete the KYC process, which in some cases, takes over a year. Also, most people claiming to be buying PI coins on the internet are scammers, luring users into sending them their PI with no intention of ever paying for them.

Personal data requirements

When using the Pi app, you’ll need to provide your personal information, including your real name and email address, connect your Facebook or Google accounts, and more. The KYC process, which unlocks the ability to transfer Pi coins from the testnet to the mainnet, requires users to provide their personal information. 

Some users believe that the Pi project is selling personal data to third parties. It is worth noting that the team has stated that they are not selling user data. It is also worth pointing out that it is very unusual for a cryptocurrency project to collect personal data on their users. Most projects in the crypto space are centered around privacy and user anonymity.

The bottom line: Pi Network seems legit, but you shouldn’t be surprised if it never lives up to its full potential

Generally speaking, Pi Network seems legit. It has a functional testnet and mainnet, its own block explorer and browser, and a very popular crypto app – all of which speak to the project’s legitimacy. However, the lack of information shared by the Pi Core Team and the slow rollout of new features are cause for concern and explain why some users consider the project to be a scam. 

If the Open Network Period launches soon and Pi gets listed on crypto exchanges, then we could see the price of PI coin explode, especially when accounting for its large user base and millions of holders. If you want to see where the price could be headed after the open network launch, you can check our PI Network price prediction.