In the world of cryptocurrency, there is a coin that is gaining early notoriety, even before it’s officially launched. This is the Pi coin, and it is gaining traction because of the cryptocurrency’s promise of making Pi coin mining easy and accessible to anyone, using only their mobile phones.
But Pi has also been met with some criticism, particularly because of the lack of transparency and some signs that point towards it being some kind of pyramid scheme. Is Pi coin legit and worth investing in? Or should you steer away from this potential scam?
What is the Pi Network?
The Pi Network is a cryptocurrency project that aims to change how users mine cryptocurrency, making it more inclusive, simple, and not as labor and energy-intensive.
Mining is a way of earning cryptocurrency without having to put down money for it. Instead, you get rewarded crypto tokens when you help validate the network’s blockchain by solving a complex computational problem.
Traditionally, mining for networks like Bitcoin or Ethereum requires an incredible amount of effort, time, and computer power. The rewards are high, but the chances of making a profit are low without powerful hardware and dedicating a lot of your time.
But according to the Pi Network, they are introducing a new way of mining that anyone can participate in, straight from their mobile phones. The network has seen an exponential rise of active users, starting with only 10,000 users when it launched in 2019 to now hitting over 25 million engaged users last September 2021.
How does Pi coin mining work?
Pi coin mining is made simple and can be done through the Pi Network app, available on both iOS and Android. Instead of the arduous and energy-intensive work in traditional mining, Pi coin mining only requires these two steps:
Log in to the app every day. By simply logging in every 24 hours and clicking a button, you can already start mining for Pi coin. This is enabled by the Pi Network’s different types of protocol for reaching consensus and validating transactions in the blockchain.
Invite more users to the platform. You can increase your base mining rate up to 25% when you become an Ambassador. You become an Ambassador when new users join the network using your invitation code.
Is Pi Coin legitimate?
Here’s the catch: the Pi coin is yet to be launched on an exchange yet. That means that Pi doesn’t currently have any monetary value just yet. Most users are holding it out and continuing to mine Pi in the hopes of it being worth something when Pi officially gets launched.
The Pi Network project is still currently in pre-release Phase 2 mode, and it is during Phase 3 when the Mainnet will finally be deployed and Pi will officially be available on exchanges. According to Pi Network, they expect to progress to Phase 3 some time in the first quarter of 2022.
Because of the high level of uncertainty and lack of transparency at this period, some critics have expressed their worries about the legitimacy of the network.
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Is the Pi Network a scam?
Some critics have also likened the Pi Network to something like a pyramid scheme. They noted that the network exhibited some of the signs of a pyramid scheme, like the vague promise of riches and the need for recruitment.
However, because there has been no exchange of money involved at all, the Pi Network technically cannot be considered a pyramid scheme. The only thing that users have disclosed is some basic personal information needed to sign up to the network.
Because of the appearance of optional video ads on the Pi Network app, some people have suspected that the founders may be monetizing the increasing userbase of the app and using users’ data for financial gain.
While we cannot vouch for the legitimacy of the Pi network, it’s far too early to confirm whether it really is a scam.
What is Pi coin worth?
Whether it is legitimate or not, another issue with Pi coin is how much the Pi coin will actually be worth when it gets released on exchanges. Because it’s not yet live, it’s impossible to make a credible price prediction for Pi coin value.
Some supporters have given optimistic estimates that Pi will equal the US dollar in value when it gets launched, and continue to rise in value in 2025. However, there is no evidence yet to back these estimates up, so take them with a grain of salt when you come across Pi value predictions.
The Pi Network is an interesting project that, if it turns out to be legitimate and succeeds, can be revolutionary for the world of cryptocurrency. It will make mining easy and accessible and no longer a foreign concept for the everyday person.
However, there are a lot of unknowns in this project, and we think that the allegations of it being a scam are valid and warranted. We also do acknowledge that there is a possibility that the Pi Network will be a huge success, that the users will receive the Pi coins they’ve mined and the Pi will have substantial value in the market. It’s still too early to find out for sure, and we’ll just have to wait and see where the Pi Network will go in the future.
With every new cryptocurrency project, there is always a level of uncertainty involved, but it’s important to be smart and vigilant of potential scams. So for those who are actively engaged in the Pi Network, remember to always follow precautions and tread wisely.