Why Millions Still Believe in Pi Network Despite Cracks in the Foundation

Key Takeaways

• Pi Network, launched in 2019, relies on mobile-based mining rather than energy-intensive proof-of-work.

• Despite skepticism over centralization, opaque tokenomics, and KYC privacy concerns, Pi maintains one of the largest active communities in crypto.

• The project finally opened its mainnet in February 2025, with Pi briefly rallying near $3 before crashing to around $0.34 by September 2025.

• Liquidity constraints, limited listings, and alleged insider wallet activity continue to raise red flags.

• Community-driven momentum, low entry barriers, and constant ecosystem signals keep user enthusiasm remarkably strong.

  
  

Introduction

The cryptocurrency industry is no stranger to hype cycles, failed promises, and projects that thrive more on community faith than technical breakthroughs. Few cases illustrate this paradox better than Pi Network, a project born in 2019 with the promise of democratizing crypto mining by moving it to smartphones. Despite years of delays, doubts over decentralization, opaque economics, and endless criticism, Pi continues to command the loyalty of millions.

For every critic who brands it a glorified referral scheme wrapped in slick marketing, there are countless “Pioneers” who log in daily, tap their screen, and proudly identify as part of the movement. The question remains: why does Pi retain its almost cult-like momentum even as skeptics highlight its flaws?

What is Pi Network?

Pi Network launched in 2019 under the guidance of Stanford-educated founders, seeking to disrupt the costly and energy-hungry model of traditional mining. Unlike Bitcoin’s proof-of-work, Pi runs on the Stellar Consensus Protocol (SCP) and emphasizes social “security circles” instead of computing power. Its mobile-first structure means anyone with a smartphone can participate, lowering both cost and technical barriers.

In February 2025, Pi at last rolled out its long-awaited mainnet, enabling external token transfers and exchange trading. But execution stumbled. Users faced migration delays, Know Your Customer (KYC) verification backlogs, and uneven access. Initial optimism fueled a price surge to nearly $3, only to collapse to about $0.34 by September 2025.

The mixed start did not end the hype. Even now, millions continue to mine, engage, and evangelize the network, treating short-term turbulence as growing pains rather than failure.

Criticisms and Red Flags

Pi Network’s persistence masks a number of ongoing controversies and operational weaknesses.

Centralization and core team dominance

Despite its claim of being an “open network,” control remains firmly with the development team. All validator nodes are operated by insiders rather than independent community participants. Without a true distribution of validation power, the promise of decentralization appears compromised.

Opaque tokenomics and limited clarity

Pi sets a capped supply of 100 billion tokens, divided into 65% for community mining, 20% for the core team, 10% for foundation reserves, and 5% for liquidity. Unlocking is tied to verified Migrated Mining Rewards (MMR). While the structure appears straightforward, the actual circulating supply is uncertain, depending on the pace of migration.

Referral-driven growth with MLM parallels

Mining efficiency leans heavily on referrals and “security circles.” Critics argue this resembles multi-level marketing strategies, and with new-user growth slowing, questions about sustainability persist.

Restricted listings and weak liquidity

Even after its mainnet debut, Pi trades only on exchanges such as OKX, Gate.io, Bitget, and MEXC. Major platforms like Binance and Coinbase have refrained from listing, citing unresolved issues with tokenomics and centralization.

Volatility and suspicious wallet activity

From early 2025 highs near $3 to just $0.34–$0.35 by September 3, 2025, Pi has lost around 90% of its value. Adding to suspicions, a wallet labeled “GAS…ODM” has quietly accumulated 331 million Pi tokens, sparking theories of insider-controlled activity.

KYC requirements and privacy risks

Users migrating tokens to mainnet must pass KYC by uploading government IDs and completing facial recognition checks. Reports suggest that this sensitive data is stored centrally rather than via user-controlled solutions. Concerns have been raised about the project’s partnerships with third-party KYC providers, fueling skepticism about whether sufficient safeguards exist to protect user privacy.

Why the Hype Persists

For all the flaws, Pi Network thrives because it appeals to emotional, social, and behavioral drivers beyond financial fundamentals.

Accessibility with little risk

Mining Pi requires no upfront capital. Users only need to tap the app once per session. No costly GPUs, electricity bills, or complex wallets are involved. With bonuses from referrals and security circles, even casual engagement feels like progress.

Mobile-first design and simplicity

Pi’s real innovation lies in lowering barriers for non-technical, underbanked, or crypto-curious individuals. Its one-tap mining routine and lightweight SCP architecture frame participation as effortless and inclusive.

Community identity and rituals

Pi users proudly call themselves “Pioneers.” Daily tapping, referrals, and ecosystem events such as PiFest or the “Map of Pi” create social glue. Even if the widely claimed 60 million user base is debated, verified activity among 12 million accounts is substantial.

Narrative of patience and long-term building

Setbacks are reframed as temporary hurdles within a broader vision of mass adoption. The narrative emphasizes experimentation first, utility later. For believers, faith in the eventual outcome outweighs short-term struggles.

Ongoing ecosystem signals

Hackathons, grants, and developer initiatives keep the community engaged. These signals of progress, though not yet full products, maintain momentum between market swings and reinforce the sense of forward movement.

Conclusion

Pi Network’s staying power lies less in current price performance and more in its ability to harness mass participation, low-risk entry, and community identity. The real test ahead is whether Pi can transform enthusiasm into meaningful decentralization, liquidity, and utility.

Key milestones to watch include independent validator adoption, listings on major exchanges, successful ecosystem apps, and transparent migration progress. If those pieces come together, Pi could transition from hype to real-world use. If not, its greatest product may remain faith itself.

Frequently Asked Questions

Is Pi Network truly decentralized?

Not yet. All validator nodes remain controlled by the core team, undermining decentralization claims. The shift to community-run nodes is a key milestone for Pi’s credibility.

What is Pi’s current price?

As of September 2025, Pi trades around $0.34–$0.35, down about 90% from its early 2025 highs near $3.

Where can Pi be traded?

Pi is available on exchanges like OKX, Gate.io, Bitget, and MEXC. It has not yet been listed on major exchanges like Binance or Coinbase.

How many Pi tokens exist?

Pi has a maximum supply of 100 billion tokens. Distribution is set at 65% for community mining, 20% for the core team, 10% for foundation reserves, and 5% for liquidity. Actual circulation depends on migration progress.

Is mining Pi free?

Yes. Mining requires only tapping the app once per session. However, earnings are boosted by referrals and participation in “security circles.”

What are the main criticisms of Pi?

Critics highlight centralization of control, opaque tokenomics, referral-heavy growth, weak liquidity, price volatility, and potential risks related to KYC data storage.