Pi Network is the most talked-about project in the crypto sphere. In the last five years, it has created tremendous buzz, curiosity, and debate within the crypto industry. The reason behind all this excitement is its unique approach that allows users to mine Pi coins from their mobile phones. Because of this distinctive method, the Pi Network receives enthusiastic responses from all around the world.
If you are someone who hasn’t heard about this project, Pi Network is a decentralized initiative built on the concept that users can mine crypto through their smartphones. The digital asset operates on its own blockchain and uses the Stellar Consensus Protocol to ensure efficient and secure transactions.
Since its launch, the Pi Network has generated significant buzz. From a simple mining project, it has transformed into a vibrant community. Excited to learn about the Pi Network? Then you are in the right place. In this article, we will explore Pi Network’s history, its benefits, its current status, and its future scope.
Understanding the Pi Network
The Pi Network is a mobile-first cryptocurrency project founded by Stanford graduates Nicolas Kokkalis, and Chengdiao Fan. It uses a decentralized approach, ensuring that transactions are secure and not controlled by a central authority. Users can mine coins directly from their smartphones, as the project operates on its blockchain. The goal of the Pi Network is to create a decentralized network that doesn’t require significant computational power.
The Pi Network was officially launched on March 14th (Pi Day) to symbolize the mathematical constant π (approximately 3.14). Its development occurs in several phases. Let’s explore these phases one by one.
Beta Phase (2019): This was the initial phase where the network focused on building a community. During this phase, users could mine Pi coins by engaging with the Pi mobile app, while external transactions were not permitted.
Testnet Phase (2020): In this phase, developers tested the blockchain’s functionality, stability, and performance within a closed ecosystem.
Mainnet Phase (2021 – Present): This phase allows users to migrate their mined Pi coins to the blockchain. However, trading remains restricted during this period.
Open Network Launch (February 20, 2025): The Pi Network Mainnet launch concluded successfully on February 20, 2025. In this phase, external transactions will be enabled, and the Pi coin will be listed on various cryptocurrency exchanges.
Advantages of Pi Network
Pi Network offers several advantages that make it appealing to both users and businesses. Unlike traditional cryptocurrency mining, Pi coin does not require expensive mining equipment or access to banking services. Some of the advantages of the Pi network are discussed here.
- The Pi network features a simple and straightforward design that streamlines the mining process and encourages individuals to explore the crypto space. This approach makes Pi coin accessible to a broader audience.
- The Pi Network is built on the Stellar Consensus Protocol (SCP), which provides benefits such as decentralized control, energy efficiency, and fast transaction speeds. SCP operates on a trust-based verification system. Users create a security circle to verify that other members are legitimate. They can mine Pi coins on their smartphones without draining battery life or using excessive computational resources. This is made possible because the task of validating transactions and securing the blockchain is handled by specialized nodes running the Stellar Consensus Protocol.
- Unlike Bitcoin, which requires heavy-duty mining equipment, the Pi Network allows users to mine coins simply by opening the app once a day. This process does not require a constant internet connection, meaning it does not drain the battery life of mobile phone users.
Exploring Pi Network Mainnet Launch And Its Impact In Crypto Verse
Pi Network stands at a critical juncture in its development journey. After years of anticipation and community building, the project has finally reached its Open Network Launch phase in February 2025. As Pi Network transitions to public trading on exchanges like Gate.io, Bitget, and OKX, the market will ultimately determine its true value. This marks a significant turning point as Pi Network transitions from a closed ecosystem to a viable blockchain. Key features of this mainnet launch include.
External Wallet Transfers – After the mainnet launch, pioneers are now able to transfer their Pi coins to external wallets. Facilitating real-world transactions.
Listing on Major exchanges – After the open mainnet launch, Pi coin is listed on major exchanges like Gate io, Bitget, and OKX. It would potentially transform Pi coin from a digital currency on a mobile app into a tradable digital asset.
Decentralized applications (dApps): With the open status of the Pi network, developers can deploy DApps on the Pi blockchain, expanding the ecosystem and offering pioneers diverse use cases for their Pi coins.
The above X post shows the craze and buzz around the Pi Network.
How to Sell Pi Coins
After the mainnet launch, trading Pi Coins was similar to trading other cryptocurrencies. Here’s a step-by-step guide:
1. Complete KYC Verification and Token Migration: Make sure that your KYC (Know Your Customer) verification is successful. Without this verification, your tokens cannot be transferred to external exchanges.
2. Choose a Suitable Exchange: Major exchanges like OKX, Gate.io, Bitget, and CoinDCX have listed Pi Coin. Research and select an exchange that offers good liquidity, security, and a user-friendly interface.
3. Transfer Pi Coins: From your Pi Network wallet, transfer your Pi Coins to the wallet on your chosen exchange.
4. Sell Your Pi Coins: After successfully completing the transfer, you can sell your Pi Coins. Simply place a sell order on the exchange and execute it.
5. Withdraw Your Funds: Once you have sold your coins, you can withdraw the funds or continue to use them on the exchange.
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Controversies Around Pi Network And Pi Coin
Despite its tremendous growth, Pi Network faced enormous criticism for various reasons that are essential to acknowledge:
A History of Mainnet Delays
The first topic is the history of its mainnet delays. People have been waiting for six long years for the official release. This timeline exceeds those of comparable projects, such as Ethereum and Cardano, which achieved functional magnets in just two years.
However, after all these delays, the Pi Network successfully transitioned to its fully functional mainnet on February 20, 2025. This marks the shift from a closed testing phase to an open, fully decentralized network.
Network centralization is also a concern for the Pi Network. All the active mainnet nodes are solely controlled by the Pi Core team, which contradicts its claims of decentralization.
Accusations of Pyramid Scheme
Many industry leaders claim that the growth of the Pi Network relies heavily on hype and referrals, resembling a Ponzi scheme. Before the mainnet launch, Ben Zhou, the co-founder and CEO of Bybit, referred to it as a Ponzi scheme and refused to list it on their exchange.
Transparency concerns
The Pi Network reports a user base exceeding 60 million people worldwide. However, blockchain data suggests otherwise. Blockchain explorers like ExplorePiu report only 9.11 million wallets, representing just 15% of the claimed user base. Additionally, only about 20,000 wallets demonstrate daily activity, highlighting a notable gap between reported and actual engagement.
Inflationary Concerns and Tokenomics
The Pi Network has experienced rapid inflation, with the supply of Pi tokens doubling in just over a year. In January, the circulating supply reached 5.56 billion tokens. Without mechanisms to balance supply and demand, such inflation significantly devalues the token, undermining confidence in its long-term sustainability.
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Final Thoughts
Pi Network has certainly created a buzz in the crypto sphere with its unique mobile-first mining approach and community-centric development. While it offers several advantages like energy-efficient mining and accessibility, it has also faced criticism regarding delays, centralization, and transparency concerns.
As Pi Network transitions to an open network, its success will largely depend on its ability to address these issues and deliver on its promises. The journey ahead is both exciting and challenging, and only time will reveal the true impact of the Pi Network in the world of cryptocurrencies.
