Pi Network, after over six years of anticipation, has officially announced the launch of its open mainnet. This article delves into what Pi Coin is, whether it's truly possible to mine via mobile devices, key risks to consider, and essential details about its circulation.
Understanding Pi Coin
Pi Coin, also known as Pi, promotes itself as a cryptocurrency that allows users to mine directly from their smartphones. By downloading the official app and engaging daily, users can accumulate Pi coins, aiming to create a low-barrier, low-cost cryptocurrency network.
However, until the mainnet launch, Pi essentially functioned as a centralized product. Previous transactions involved interactions with centralized servers, similar to traditional internet operations, which contradicted its goal of building a decentralized crypto network.
Limited Team Information
Pi Network was founded in March 2019. According to its website, the team is led by Dr. Chengdiao Fan, a Stanford University anthropology PhD, and Nicolas Kokkalis, a lecturer on decentralized applications. Beyond these two, no additional team members are publicly listed, raising questions about transparency.
How Does Mobile Mining Work?
Mining Pi coins is straightforward: users need to open the app and click a button once every 24 hours to earn tokens. The registration process is simple, making it accessible to anyone with a smartphone and internet connection.
Unlike traditional mining for cryptocurrencies like Bitcoin or Ethereum, Pi Network does not involve a verification process. Instead, it resembles a reward system where daily app interaction grants tokens. Notably, the project’s source code remains unpublished. According to its whitepaper, Pi uses a modified Stellar Consensus Protocol (SCP) designed by Stanford Professor David Mazières.
Risks Associated with Pi Network
While many participants argue that since no monetary investment is required, there’s little to lose, several risks should be considered:
- KYC Data Privacy Risks: To withdraw mined tokens, users must complete KYC verification, providing sensitive information like ID or passport details. This poses potential privacy leaks, unlike most mainstream mining processes.
- Mobile Security Concerns: Although no major incidents have been reported, the absence of independent security audits and slow project development raise doubts about the app’s safety across platforms.
- Unclear Tokenomics: Pi’s distribution model has faced criticism. Early adopters received high rewards, leading to significant token accumulation. If listed on exchanges, early holders might dump tokens, causing price volatility.
Despite these risks, if users view their time and minimal costs as negligible, potential losses may be low.
Why is Pi Coin So Popular?
Pi Coin has attracted millions of users, even among those outside the crypto space. Key reasons for its popularity include:
- Accessible Mobile Mining: Unlike Bitcoin or Ethereum mining, which requires substantial investment and technical knowledge, Pi allows easy participation via smartphones.
- Viral Marketing Strategy: The referral system incentivizes users to recruit others, boosting mining rates. This approach has turned many into voluntary promoters.
- Lottery Mindset: With no upfront financial commitment, users often join on the off chance that the project succeeds, potentially yielding high returns.
Pre-Mainnet Trading and Valuation
Although Huobi Global listed Pi coins in late 2022, trading involved IOU (I Owe You) tokens rather than actual Pi, as deposits and withdrawals weren’t supported. Recently, Pi’s IOU price surged to $100, settling around $83 at the time of writing, with a 24-hour increase of over 70%.
However, with a planned maximum supply of 100 billion tokens, a fully diluted valuation at $80 per coin would exceed $8 trillion—four times Bitcoin’s market cap—making such prices unrealistic. Traders should exercise caution due to volatility and uncertainty.
Current Use Cases and P2P Transactions
Even before the mainnet launch, Pi coins are accepted by various businesses in regions like Taiwan, covering sectors such as food, clothing, and transportation. This has created practical, grassroots application scenarios.
👉 Explore real-time trading strategies for emerging tokens
Frequently Asked Questions
What is Pi Coin?
Pi Coin is a cryptocurrency designed to be mined on mobile devices. Users earn tokens by daily app interactions, aiming to build a user-friendly digital currency network.
How do I start mining Pi?
Download the official Pi Network app, register, and click the mining button every 24 hours. No specialized hardware or financial investment is needed.
Is Pi Network safe to use?
While no major security breaches have occurred, the lack of published source code and independent audits means users should be cautious, especially with KYC data submission.
Can I trade Pi coins now?
Prior to the mainnet, trading was limited to IOU tokens on certain exchanges. With the mainnet launch, actual Pi tokens may become tradable, but volatility is expected.
What is the total supply of Pi?
The whitepaper mentions a maximum supply of 100 billion tokens, but circulating supply details remain unclear until full mainnet deployment.
Why is KYC required?
KYC verification is mandatory to prevent fake accounts and ensure token distribution to genuine users, though it introduces privacy risks.