What is Pi coin?

Pi Network, one of 2025’s most controversial projects, promises mobile cryptocurrency mining but faces criticism over centralized control, inflated user numbers and its inflationary tokenomics.

Everyone is talking about Pi coin. It’s arguably the most controversial project of 2025.

On the surface, Pi Network is a digital currency and decentralized finance project developed by Stanford graduates Nicolas Kokkalis, Chengdiao Fan and Vince McPhillip. In development since 2019, it is built on the premise that anyone should be able to mine cryptocurrency through a mobile application.

However, if you dig deeper, the project has faced continuous criticism. For instance, while Pi Network claims to have over 60 million users globally, blockchain data suggests significant discrepancies between these figures and actual activity.

Additionally, the project’s inflationary tokenomics, centralization of control and reliance on advertising revenue have drawn criticism for prioritizing user monetization over decentralization and innovation.

With its transition to the “open network” anticipated in the first quarter of 2025, the ecosystem is approaching a pivotal moment –— a trial in the gladiator ring, so to speak — fueling the ongoing buzz.

Did you know? Before co-founding Pi Network, Nicolas Kokkalis created an early framework for writing “smart contracts” on fault-tolerant distributed systems during his Ph.D. work at Stanford University, even before blockchain and Ethereum were introduced.

Pi Coin: A timeline of key events

Pi Network, initially launched in 2019 for smartphone-based crypto mining, has progressed through various phases, including Testnet, node program and enclosed mainnet. It is now transitioning to an open network with its mainnet migration in early 2025.

• March 14, 2019: Official launch - Pi Network was officially launched on Pi Day (March 14), symbolizing the mathematical constant π (3.14). The initial version of the mobile application allowed users, referred to as “Pioneers,” to mine Pi cryptocurrency directly from their smartphones.
• March 14, 2020: Testnet phase initiation - On its first anniversary, Pi Network commenced the testnet phase, marking a critical step toward decentralization. This phase enabled the deployment of distributed nodes worldwide, allowing community developers to test the blockchain and create utilities using Test-Pi.
• Late 2020: Introduction of node program - Pi Network introduced its node program, allowing users to operate network nodes on personal computers. This initiative empowered Pioneers to contribute to the network’s security and transaction validation, fostering decentralization.
• December 2021: Enclosed mainnet launch - Pi Network transitioned to the Enclosed Mainnet phase, where the mainnet became live but with a firewall preventing external connectivity. This period allowed users to complete Know Your Customer (KYC) verification and migrate their Pi to the live mainnet blockchain while the community built apps and utilities within the enclosed network.
• October 2023: Roadmap announcement - The Pi Core Team released a milestone-based roadmap outlining past accomplishments, ongoing projects and future endeavors. This roadmap provided transparency and detailed the steps leading up to the Open Mainnet.
• December 2024: Open network update - The Pi Network team announced that the Open Mainnet launch, originally expected by the end of 2024, would be postponed to the first quarter of 2025. This decision aimed to allow more users to complete KYC verification and migrate their tokens to the mainnet, ensuring a more inclusive and secure ecosystem.
• January 2025: Mainnet migration progress - By January 2025, Pi Network had over 18 million KYC-verified users, with more than eight million having migrated their tokens to the mainnet. The team extended the KYC and Mainnet Migration Grace Period deadlines to Jan. 31 to facilitate the transition.

Differences between Pi coin and Bitcoin

Bitcoin

BTC$98,131

, launched in 2009, is a widely accepted digital asset with a capped supply. Pi coin, launched in 2019, offers mobile app-based mining and aims for broader accessibility but is still in its early stages with an undetermined market value.

Pi coin is certainly breaking the mold of traditional cryptocurrencies. To better understand this, let’s take a look at the table below:

Advantages of the Pi Network

By allowing users to mine Pi coins directly from their smartphones, the Pi Network removes traditional barriers like the need for expensive mining equipment or access to banking services.

Its straightforward design not only simplifies the mining process but also encourages more people to explore Web3 technologies, making cryptocurrency more approachable to a wider audience.

The Pi Network also uses the Stellar Consensus Protocol (SCP), which brings with it advantages such as energy efficiency, decentralized control and quick transaction speeds.

That said, the SCP does present some challenges, such as the complexity of setting up trust relationships between nodes and its dependence on stable network connections, which can be a drawback in areas with limited connectivity.

Despite these hurdles, one can see how the Pi Network aims to combine the strengths of SCP with its user-centric approach, creating a platform that has the potential to provide a more inclusive, scalable and sustainable digital currency solution.

Did you know? Pi Network allows users to “mine” Pi coins on their smartphones without draining the battery or using significant computational resources. This is possible because the actual work of validating transactions and securing the blockchain is handled by specialized computer nodes running the SCP.

Step-by-step guide to mining Pi coin

How the Pi Network approaches mining is its stand-out feature. However, with an “invite-only” system reminiscent of 2020’s Clubhouse, things might not be as simple as they seem.

Let’s take a look at the steps involved:

• Download the Pi Network app:
  • For Android devices, visit the Google Play Store and search for “Pi Network.”
  • For iOS devices, go to the Apple App Store and search for “Pi Network.”
• Create an account:
  • Open the app and sign up using your phone number or Facebook account.
  • Choose a unique username and set a strong password for security.
• Enter an invitation code:
  • Pi Network operates on an invite-only basis to build a trusted community.
  • You’ll need an invitation code from an existing user to join. If you don’t have a code, you can search online or ask friends who are already using Pi Network.
• Complete your profile:
  • Provide your real name, as it will be required for future verification processes.
  • Select your country and enter a valid phone number for account recovery purposes.
• Start mining:
  • After setting up your account, you’ll see a lightning bolt icon on the home screen.
  • Tap the lightning bolt to initiate your first mining session.
  • Each mining session lasts for 24 hours. After that, you’ll need to open the app and tap the lightning bolt again to continue mining.
• Increase your mining rate:
  • Invite friends and family to join Pi Network using your unique invitation code.
  • For each active referral, your mining rate increases.
  • Engage with the Pi Network community and participate in discussions to stay informed and potentially boost your mining rate further.
• Build your security circle:
  • After mining for three days, you can enhance the network’s security by adding trusted members to your security circle.

Did you know? Daily engagement, when maintaining an active mining status, is very important to the Pi Network. Remember to log in and tap the lightning bolt every 24 hours.

Is Pi coin legit or a potential scam?

In reading this far, you might have noticed a number of red flags that could have led to the question above. Here’s the truth: While the Pi Network claims to democratize access to cryptocurrency through its mobile mining platform, several factors cast doubt on its authenticity and long-term viability.

Let’s learn more about those factors:

1. User engagement and transparency issues

Pi Network reports a user base exceeding 60 million individuals globally; however, blockchain data suggests otherwise. Blockchain explorers such as ExplorePi report only 9.11 million wallets, representing a mere 15% of the claimed user base.

Moreover, only about 20,000 wallets demonstrate daily activity, indicating a significant gap between reported and actual engagement. This discrepancy, compounded by the absence of an open mainnet, raises questions about the credibility of user statistics and the actual scale of adoption.

2. Development delays and centralization

Despite six years of development, the Pi Network has yet to launch a fully operational mainnet. This timeline far exceeds those of comparable projects, such as Ethereum and Cardano, which achieved functional mainnets within two years.

Adding to these concerns is the network’s centralization. All active mainnet nodes are controlled exclusively by the Pi core team, contradicting its claims of decentralization. While the project promises eventual decentralization, its current structure raises doubts about its commitment to this principle.

3. Inflationary concerns and tokenomics

The Pi Network’s economic model further undermines its legitimacy. The network has experienced rapid inflation, with the supply of Pi tokens doubling in just over a year.

As of January, the circulating supply has reached 5.56 billion tokens. Without mechanisms to balance supply and demand, such inflation significantly devalues the token, eroding confidence in its long-term sustainability.

4. Privacy and data security risks

The Pi Network’s mandatory KYC process introduces significant privacy concerns. Users are required to submit sensitive personal data, including selfie videos and government-issued identification. This data is processed by regional validators, raising risks of potential misuse or identity theft.

5. Revenue model and advertising

The project’s reliance on in-app advertising raises additional questions. Pi Network claims that advertisements help cover operational costs, yet its minimal energy requirements suggest otherwise. Moreover, Pi Network employs psychological strategies to retain user engagement. These tactics, while effective in maintaining participation, may obscure the lack of tangible utility and deliverables.

So, while Pi Network has achieved remarkable growth in user numbers and visibility, its operational and structural issues undeniably cast a shadow.

Thus, the door to credibility is only partially ajar.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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