Is Pi Network Legit?

Pi Network is a popular but controversial crypto project due to its unusual nature. Learn about Pi Network, how it works, whether the project is legit, and more.

Pi Network is one of the most talked-about crypto projects in recent years, not just for its ambitious mission to “mine crypto on your phone,” but also for the widespread skepticism around its legitimacy. With tens of millions of users and a long-delayed mainnet launch, the project is surrounded by controversy and speculation.

What is Pi Network?

Pi Network is a mobile-first crypto project that claims to let users “mine” Pi Coin using nothing more than their smartphones. The app launched in 2019, developed by Stanford PhDs Dr. Nicolas Kokkalis and Dr. Chengdiao Fan. The goal was to build a decentralized, eco-friendly, and accessible blockchain platform that anyone could participate in, even without technical expertise or expensive mining equipment.

Unlike Bitcoin or Ethereum, Pi doesn’t require users to solve complex cryptographic puzzles. Instead, users “mine” Pi by logging into the app daily and pressing a button. The app also encourages inviting others to the network, with referral bonuses increasing your mining rate.

Despite the popularity of the app (Pi claims over 65 million active users and more than 100 million total registrations), its roadmap has been slow to unfold, and many crypto investors remain unsure whether the project is truly a decentralized blockchain or a glorified points app.

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What is Pi Coin?

Pi Coin (PI) is the native currency of the Pi Network. It’s designed to be a utility token for an ecosystem of apps and services within the Pi platform, although at the time of writing, use cases are still limited.

In its early phases, Pi Coin was mined as a placeholder token inside the app, not transferrable, tradable, or on a public blockchain. That changed in February 2025 with the launch of the Open Mainnet, when PI officially became a live, blockchain-based token.

The total supply of Pi is capped at 100 billion coins, with a halving model that reduces mining rewards over time. The distribution of Pi aims to reward early adopters, contributors to network growth, and validators running nodes.

Following the Open Mainnet launch, Pi Coin was listed on several exchanges, including OKX, Bitget, and MEXC, and briefly reached price highs above $1. However, price volatility remains high, and major platforms like Binance and Coinbase have not yet listed the coin.

How does Pi Network work?

Pi Network uses a consensus mechanism based on the Stellar Consensus Protocol (SCP), a Federated Byzantine Agreement system. In simple terms, instead of competing to solve mathematical problems (like Bitcoin’s Proof of Work), Pi users validate each other through trust circles.

Here’s how participation works:

• Pioneers: Everyday users who log in to the app and tap a button to “mine” Pi.

• Contributors: Users who build “security circles” of trusted contacts, increasing their mining rate.

• Ambassadors: Users who refer others to the app and get bonus rewards.

• Node Operators: Users who run Pi Nodes on desktop computers, helping validate transactions in the mainnet phase.

During the early years, mining Pi didn’t involve any blockchain activity — it was more like accruing IOUs for future tokens. Real blockchain transactions only began with the Open Mainnet.

In addition to mining, users must complete KYC verification before they can migrate their Pi to the live blockchain. The project gave a deadline of February 28, 2025, for users to complete this process; otherwise, their mined Pi may expire.

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Pi Network tokenomics

Pi Network’s tokenomics are designed to reward early participation while capping total supply over time. The maximum supply of Pi is set at 100 billion coins, with a gradually declining issuance model similar to Bitcoin halving cycles. However, Pi’s distribution structure is distinct and reflects its social-first approach.

Pi Coin is distributed through several key channels:

• Mining rewards for users who log in and engage with the app

• Referral bonuses for Ambassadors

• Security Circle contributions from Contributors

• Developer and ecosystem grants to fund third-party apps and services

• The Core Team reserve, allocated to Pi’s founding members, and ongoing development

As of mid-2025, Pi Network has not yet published a fully detailed breakdown of how the 100 billion PI will be allocated between users, the team, and the ecosystem. This lack of full transparency has led to criticism from some investors and experts.

Another unique feature is that mined Pi doesn’t instantly become liquid. Users must pass Know Your Customer (KYC) checks and migrate their balances to the Open Mainnet to make them transferable. Those who fail to do so by the network’s deadline risk forfeiting their earned coins.

While this design arguably helps enforce legitimacy and deter bot farming, critics argue it also gives the Core Team significant control over who can access and use their tokens.

Pi Network roadmap

Pi Network has followed a multi-phase roadmap, albeit with delays:

1. Phase 1: Design and distribution (2019–2020): The mobile app launched, allowing users to begin earning Pi off-chain as IOUs. No blockchain existed at this point.

2. Phase 2: Testnet (2021–2022): A limited testnet was introduced for developers and early node operators. Coins still weren’t transferable or usable.

3. Phase 3: Enclosed mainnet (2022–early 2025): A closed mainnet environment was launched, but users could not transfer Pi to external wallets or exchanges. This stage was originally meant to last a few months, but it ultimately dragged on for more than two years.

4. Phase 4: Open mainnet (Launched February 2025): The Open Mainnet finally went live, allowing KYC-verified users to migrate their balances to the blockchain and trade Pi on supported exchanges.

While the project claims the drawn-out timeline was necessary to ensure security, scalability, and KYC compliance, many users and analysts have voiced concern over the repeated delays and opacity.

Some of the main criticisms include:

• Moving goalposts: The Enclosed Mainnet stage was extended multiple times without clear explanations, frustrating long-time users.

• Lack of communication: Official updates were infrequent and often vague, leading to speculation and misinformation within the community.

• Delayed liquidity: Users couldn’t access or trade their Pi for years after mining began, which some critics say resembles a pay-later pyramid scheme, especially with mining rates declining and no fixed token value.

• KYC bottlenecks: Some users reported difficulty accessing or completing the KYC process, raising questions about data handling, fairness, and regional accessibility.

Despite these concerns, defenders of the project argue that a slow, cautious rollout was preferable to rushing a half-baked blockchain into public circulation. They point to the app’s massive global user base and eventual mainnet launch as signs that Pi Network may still live up to its promise, albeit on its own timeline.

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Is Pi Network legit?

That really depends on who you’re listening to. Pi Network has attracted a massive global following and made tangible progress toward building a decentralized ecosystem. But it has also drawn criticism for its unconventional design, centralized control, and delayed delivery.

Arguments in favor

• Large and active user base: Pi Network claims over 65 million active users and more than 100 million total sign-ups. These numbers make it one of the most widely adopted crypto-related apps in the world, particularly popular in regions like Southeast Asia, Africa, and South America.

• Credible academic founding team: Pi’s co-founders, Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, both hold PhDs from Stanford. Kokkalis has a background in distributed systems, while Fan studied social computing. Their academic pedigree lends credibility, particularly in contrast to anonymous or opaque crypto teams.

• Mainnet is live: After years in a test or “enclosed” phase, the Open Mainnet officially launched in February 2025. This transition marked a significant milestone, moving Pi from an off-chain simulation to a real blockchain network. It allowed KYC-verified users to migrate their balances and begin transacting on-chain.

• Tradable on multiple exchanges: Since the Open Mainnet launch, Pi Coin has been listed on several centralized exchanges, including OKX, Bitget, and MEXC. While major exchanges like Binance or Coinbase have yet to adopt it, Pi is now tradable and has real market value.

• Developer and app ecosystem under development: The Pi Core Team has released a software development kit (SDK) and hosted hackathons to encourage third-party developers to build on its platform. While still in their infancy, these efforts potentially demonstrate that Pi is trying to evolve into a functional ecosystem.

Concerns and red flags

• Referral-based growth model: One of the most common criticisms of Pi Network is its heavy reliance on referrals to grow its user base. The app encourages users to invite others in exchange for faster mining rates, leading some to describe the model as pyramid-like or “multi-level marketing in disguise.”

• Opaque tokenomics and governance: Despite its large user base and multi-year timeline, Pi Network has not released a comprehensive public document outlining the full token allocation, governance model, or long-term economic design. Users know that the total supply is capped at 100 billion, but the exact distribution between the Core Team, ecosystem, reserves, and user mining is still vague.

• Centralization of control and infrastructure: For a project that claims to be building a decentralized, user-powered blockchain, Pi Network remains heavily centralized. As of mid-2025, nearly all validator nodes are operated by or affiliated with the Core Team. Decision-making is not community-governed, and the ability to migrate tokens depends on passing KYC through Pi’s own internal process.

• Monetization through advertising: Throughout its development phase, Pi Network monetized its app through in-app advertising. Users are required to watch ads during the mining process, leading some to speculate that the project was more focused on generating ad revenue than building a blockchain.

• Regulatory and legal ambiguity: Pi Coin is not registered as a utility or security token in most jurisdictions, and Pi Network’s compliance posture is unclear. With KYC tied to a proprietary system and no clearly stated legal framework for token issuance, the project may face regulatory challenges in the future.

• Data privacy: Pi Network requires users to submit sensitive personal information, including government-issued ID, facial recognition data, names, addresses, and phone numbers, as part of its KYC process to access and transfer mined tokens. This centralization of user data raises significant privacy concerns, particularly given the lack of independent oversight or public audits of how this information is stored, protected, and used. Past allegations of data mishandling and recent reports of compromised user credentials have only heightened unease.

Overall, Pi Network presents an ambitious attempt to make cryptocurrency accessible through mobile-first, low-barrier participation, backed by a real mainnet, academic founders, and a massive global user base. However, its legitimacy remains debated due to its referral-driven growth, centralized control, opaque tokenomics, and data privacy concerns. While it has made meaningful progress, the project's long-term credibility will ultimately depend on increased transparency, decentralization, and real-world utility.

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Don’t forget the tax bill…

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