 The truth about Pi coin: Could it be the next Bitcoin? 
2025-01-23
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 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.
 Differences between Pi coin and Bitcoin 
Bitcoin (BTC), 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:

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.