What is a PI network?
Despite years of delays, opaque operations and widespread skepticism, the PI network still orders cult-like nearby support.
However, critics call the project “money-oriented” and rely on in-app ads, referral-driven growth and centralized token management. Some people argue that customer (KYC) requirements can enable the monetization of user data.
The questions are simple. Criticized for its bottlenecks and limited utilities, Mobile Mining cryptocurrency is said to be faithfully tapping millions of people every day.
Launched in 2019 by Stanford-Educated Founders, Pi Network was founded to rethink crypto mining. Instead of energy-intensive hardware, users “mining” PI (PI) coins via smartphone apps.
The project relies on stellar consensus protocols (SCPs) and social “security circles” rather than proof of work (POWs), which promises broader inclusion than hash power races.
In February 2025, PI finally opened its long-awaited mainnet for external transactions and token transfers, years after its original promise.
But the rollout was rocking. The delay in the migration, KYC backlog and uneven access left a lot of frustration. Still, the hype has grown stronger. The short rally pushed the Pi price up to $3 before sliding to about $0.34 by September 2025.
So far, PI networks have continued to maintain their incredible enthusiasm in the face of operational and structural concerns.
Did you know? The first mobile “mining” trend was not PI. In 2017, a project called Electroneum promised to minify smartphones, but fell into decline after the exchange lost interest.
Criticism and the Red Flag
While PI networks continue to attract a large number of daily users, critics argue that its foundation is full of unresolved flaws.
Centralization and core team control
Although PI is branded as an “open network,” control remains concentrated in the hands of the core team. All validator nodes remain operated by the project’s developers, not by independent community members. This undermines the decentralization where most cryptocurrencies are built.
Opaque Toknomics and Distribution
The PI sets a maximum supply of 100 billion tokens and is split into four buckets. 65% community mining rewards, 20% for core teams, 10% for base reserves, and 5% liquidity. On paper, it looks easy, but the actual number of circulation depends on the number of coins that have moved into the mainnet. Each category only unlocks in steps with a verified transition mining reward (MMR).
Referral-based rewards with similarities in MLM
Mining PIs rely heavily on referrals and “security circles.” Critics argue that this layered recruitment system reflects a multi-level marketing scheme and raises the issue of sustainability as new users slowed growth.
Limited lists and liquidity issues
Even after the release of Mainnet in February 2025, PI trading venues are limited to middle-tier exchanges such as OKX, Gate.io, Bitget, and MEXC. Major platforms such as Binance and Coinbase have withheld lists, citing open concerns about talknomics and centralization.
Volatility and suspicious token activities
PI’s market performance was poor. From the early highs in 2025, it is about $0.34-0.35 (90% crash), nearly $3 as of September 3, 2025. Meanwhile, crypto wallets labeled “Gas…ODM” have quietly accumulated 331 million PI coins, further promoting suspicions of insider-led activities.
Privacy risks from centralized KYC
To move a mined PI to the mainnet, users must first know their customer (KYC). That means uploading the government-issued ID and completing a facial recognition “live selfie” check. The data is stored on centralized servers, not under the user control system that has sparked criticism of privacy and security risks, according to the report.
The concerns are nothing new. Previous allegations of issues with third-party KYC providers have encouraged ongoing questions about how PIs handle sensitive user information and whether adequate protection measures are in place.
Did you know? Recent web analyses show countries by top visitors on MinePi.com: Vietnam (10.2%), South Korea (8.2%), India (6.66%), the US (6.6%), and Ethiopia (5.2%).
Why hype continues
Free mining, social reinforcement and stable ecosystem signals combine to keep the emotional investment of millions of people (critics focus on liquidity gaps, limited lists, and centralization).
Low barriers to entry, minimal financial risks
Mining PIs are mindful instead of capital. Users will simply open the app once per session to see their activity (no GPU, no electricity bills).
That framing reduces perceived risks and makes networks easier for anyone with a smartphone to access. Layered incentives such as referral boosts (15% active invitations) and security circles (up to 100% bonuses) gamify the experience and turn casual tapping into incremental progressions.
Accessibility and mobile-first design
The Pi is sold as a “crypto for the smartphone era.” Instead of a wallet or mining rig, participation will be reduced to a one-tap routine. Analysts emphasize this as a true innovation in PI. It converts non-technical, bank-deficient, or encrypted users to participants via lightweight, energy-efficient systems (SCP, not POW).
Community Identity as a Momentum
Labels are important. PI users call themselves “pioneers,” and rituals such as daily taps, introductions, and team building create social glue.
Campaigns such as Pifest and Map of Pi strengthen their activities and give participants a sense of belonging. Even when the PI’s “60m users” figure is being discussed, we have confirmed that around 12 million accounts are still growing by Crypto standards.
Experiment and hope rather than immediate utility
The project’s story is intentionally long-term. First build the user graph, then expand the utility. The sequence allows for temporary hurdles to be reconstructed by transition delays and thin lists. For followers, vision is more important than it is now.
Ongoing evolutionary signals
Momentum continues to live through ecosystem clues, such as hackathons, developer grants, and builder funds. Although these are not final products, they can help you track and discuss community milestones and maintain engagement between market fluctuations.
Did you know? In 2025, over 6.9 billion smartphones were used worldwide. This means that mobile first crypto experiments such as PI could potentially have a larger addressable market than the approximately 460 million Bitcoin wallets.
What to see next
The PI’s staying power was never about the short term price. The actual test is whether a large amount of curiosity can be transformed into an open network utility.
For observers, the signal to watch is clear.
- Actual decentralization: “Open Network” proves that it means more than a slogan. Independent validators and actual integration (not just in-app messaging) are important.
- List and liquidity: Price discovery and user trust remain limited until major exchanges like Binance intervene.
- Ecosystem Delivery: Funded hackathons, live apps and active usage are far more important than blog updates.
- KYC and transition progress: The transparent, growing number of on-chain users forms the basis of any functional economy.
If these milestones move forward, Pi hype could begin to move to tested utilities. If they stall, faith (not the foundation) remains the main product of the project.