Pi Network is one of the biggest ecosystems in the blockchain industry. The network created Pi Coin, a cryptocurrency that anyone with a smartphone can mine. As a result, this technology removes one of the biggest barriers that exists in Bitcoin, Litecoin, and Ravencoin mining.
Pi Network has accumulated millions of users from around the world. Its main application has been downloaded by more than 60 million people while its browser has more than 10 million installs. Further, Pi Coin has more than 2 million followers on Twitter, higher than most cryptocurrencies.
Most importantly, many developers are now building tools in the ecosystem. These tools are in the decentralized finance, gaming, escrow, and polling among others. The goal for the developers is to have a full ecosystem that is powered by an easily mined cryptocurrency that has low transaction costs.
However, there are questions about whether Pi Network and Pi Coin are real or a scam. These questions are valid considering that Pi users have been mining the coin for about five years now. Most of them have accumulated thousands of coins, which they cannot use or convert into fiat currencies.
At the same time, the developers have remained muted about when the network will be connected to exchanges like Binance and Coinbase. Instead, they have insisted that the coin remains in an enclosed mainnet as they work on the project.
My opinion is that Pi Network’s developers are using the enclosed mainnet period for their own benefit. For one, Pi is already making money since it runs ads on its platform, which the developers say is for maintaining the infrastructure.
Therefore, while Pi Network is not a scam, I have concerns about the delay in its enclosed mainnet since five years is a long time.
Pi Coin mining is not profitable for now since miners cannot redeem their coins in the marketplace. Also, for miners, it is not clear when or whether the developers will move it from the enclosed mainnet.
History suggests that coins that are developed before being listed in exchanges don’t do well. A good example of this is Sweatcoin, which I wrote about here. Sweatcoin uses the same model as Pi Coin in that it allowed users to mine tokens through exercising and walking.
After going public, the momentum that existed in the network faded and the Sweat Economy price has crashed by over 90% from its peak. I suspect that Pi Coin will also behave like that since most holders will rush to the exit.