Pi Network has been one of the most talked-about and contentious cryptocurrency initiatives for years. Pi Network enables users to mine its native token, Pi, with just their mobile phones, as opposed to existing cryptocurrencies that need pricey mining equipment.
Millions of users were drawn to this approach in the hopes of being early adopters of the next big cryptocurrency. But Pi was a closed ecosystem for a long time, BrandSpur banking and finance news desk reports.
Users were unable to trade the tokens on any significant exchange while they were accumulating. When Pi Network introduced its Open Mainnet on February 20, 2024, trading on external exchanges was formally made possible, finally changing that. What followed was a combination of excitement, disappointment, controversy, and speculation. Others viewed the listing as evidence that Pi was never what it promised to be, while others saw it as a significant milestone.
A group of Stanford grads launched Pi Network in 2019 intending to enable mobile mining so that cryptocurrency would be accessible to all. An aggressive referral-based strategy that paid users for bringing others on board allowed the project to grow quickly. Over 30 million people (referred to as “Pioneers”) were using the project by 2021. However, despite its increasing population, the network remained in its “Enclosed Mainnet” phase, meaning users could not sell their tokens outside the ecosystem.
Critics doubted for years if it was a genuine blockchain project or merely a complex marketing ploy. Users became impatient with the delays in establishing an open network where they could ultimately use or sell their tokens, while the team persisted in constructing infrastructure. This annoyance reached its zenith in December 2023 when there were speculations that the eagerly anticipated Open Mainnet launch had once again been delayed. The team did, however, reassure users that the debut was imminent.
The company finally declared the Open Network’s formal launch on February 20, 2024, which allowed users to move their mined tokens out of the ecosystem and trade them on centralised exchanges (CEXs).
Several significant cryptocurrency exchanges, including OKX, MEXC, Bitget, and BitMart, promptly listed the coin for trading as soon as the Open Mainnet was live. For many users who had been waiting for this chance for years, it was a time to celebrate. The excitement, though, was short-lived. Pi’s price skyrocketed to $1.84 in the hours after it was listed, but it then plummeted, falling more than 65% to $0.64. While some traders were able to pay out, others were left with tokens that were much less valuable than they had anticipated.
Low liquidity was one of the main causes of this steep price decline. Only roughly 1 billion of the 9.7 billion tokens were initially available for trading, although millions of people had mined the coin over the years. The market was extremely volatile as a result of this limited supply and speculative trading.
Bybit and other exchanges, meanwhile, declined to offer the coin at all. Ben Zhou, the CEO of Bybit, even called Pi Network a scam, referring to a 2023 warning from Chinese authorities that described it as a “fraud targeting elderly investors.” The lack of a public statement from the project’s developers in response to these accusations increased mistrust about it.
The biggest cryptocurrency exchange in the world, Binance, had a different strategy from other exchanges that included Pi right first. Binance chose to allow its users to vote on whether it should be featured on the platform instead of making an executive decision. This action was perceived as an effort to both prevent possible reactions if the initiative proved troublesome and to determine actual user interest in the Network.
Continuing, the announcement of the vote results is scheduled for February 27, 2024. There is still much disagreement regarding its legitimacy. Blockchain explorers only display roughly 9.1 million active wallets, despite the project’s boast of over 60 million users. This begs the issue of how many users actually own or utilise the token.
Furthermore, there is no clear indication of when truly independent validators will join Pi Network, which is currently primarily controlled by its core staff despite claims of decentralisation.
Many people are curious about what will happen now that cryptocurrency is trading on major platforms. The first question is whether the price will go up again.
At the moment, its price is erratic, ranging from $0.65 to $1. User demand, exchange support, and liquidity all affect the future price. Price increases and increased trust could result from Binance listing.
Concerns have also been raised over the network’s ability to establish itself as a legitimate blockchain. Critics claim that because users recruit others in exchange for benefits, its economic model is similar to a pyramid scheme.
Therefore, the adoption of Pi as a payment method by actual businesses will determine its success.
