Pi Coin Investment Guide: Understanding the Truth About This Mobile Mining Project

Traditional Mining Dilemma and the Birth of New Solutions

Cryptocurrency mining has always been an energy-intensive industry. According to data from the Cambridge Bitcoin Electricity Consumption Index, in 2023, the global annual electricity consumption for Bitcoin mining ranged between 67 and 240 TWh, surpassing the total energy usage of many European countries. Additionally, the high cost of specialized mining hardware creates a barrier to entry, making it difficult for small-scale investors to participate.

Against this backdrop, in 2019, three Stanford University PhD students founded Pi Network, with the core idea of enabling mining operations via smartphones while minimizing energy consumption. This innovative approach aims to democratize the mining process, allowing ordinary users to participate in acquiring crypto assets.

How Pi Network Works and Its Core Advantages

The Pi Network development team is committed to building a complete ecosystem. Within this network, users can use Pi coins for goods transactions, service purchases, and decentralized application usage.

Compared to traditional cryptocurrencies, Pi Network exhibits differentiated features across multiple dimensions:

Low Barrier to Entry for Mining: Users do not need expensive professional equipment; ordinary smartphones suffice. Unlike Bitcoin mining, which requires complex computations, Pi’s design significantly simplifies hardware and power requirements.

Integration with Social Networks: Users can invite trusted family members or friends to join, establishing trust circles to increase reward opportunities. This feature is absent in traditional mining, enhancing the platform’s social attributes.

Technical Foundation: Utilizes Stellar consensus protocol and trusted circle mechanisms to address blockchain scalability issues.

Ecological Tools: Built-in Pi Browser supports the operation of decentralized applications within the ecosystem.

Progress of Listing and Trading

Currently, Pi coins are not listed on any exchanges. The project team is working on migrating to the mainnet, which is a critical step toward full independent operation. The mainnet features include:

Independent Operation: Once migrated, Pi Network will run on an independent blockchain, with no control from the development team.

Decentralized Validation: Transactions are verified and recorded by distributed nodes, ensuring network security.

Full Functionality: Supports all planned features, including cross-platform transaction capabilities.

Exchange Eligibility: After the mainnet launch, Pi coins will meet the criteria for listing on traditional crypto exchanges.

According to the official roadmap, after the mainnet migration, users will be able to buy, sell, and trade Pi coins on relevant platforms. The team plans to list Pi on mainstream virtual currency exchanges post-migration, enabling full circulation.

Current Monetization and Trading Channels

Since Pi coins are not yet listed on traditional exchanges, conventional buying and selling are currently unavailable. However, investors have alternative options.

In-App Trading: Users can download the official Pi Network app (iOS or Google Play) to directly trade Pi coins with other users within the app, exchanging for other tokens or fiat currency.

Importance of KYC Verification: Completing identity verification will be a prerequisite for participating in mainnet transactions. Only users who pass KYC can smoothly transfer Pi coins to the mainnet, preparing for future trading.

Investors should closely monitor the project team’s announcements regarding mainnet migration and listing timelines to avoid missing trading opportunities.

Project Development Timeline

March 2019: Three Stanford PhDs launched Pi Network, aiming to enable ordinary users to mine using smartphones.

2019-2020: The team released a mobile app allowing users to mine by clicking once every 24 hours. Simultaneously, Pi Wallet and Pi Browser were launched.

2021-2022: Began preparing for mainnet migration, upgrading security and scalability.

2023: Introduced KYC security verification to enhance mainnet compliance.

June 2024: Over 12 million users completed KYC verification.

July 2024: The team announced a six-month grace period to give more users the chance to complete verification.

The official plan is to complete mainnet migration within 2024, with several preconditions: at least 15 million users verified, 10 million migrated to mainnet, 100 ecological applications ready, ongoing core team technical progress, and a relatively favorable external environment.

Risks and Current Status of Pi IOU Trading

On platforms like CoinMarketCap, Pi coins are currently traded as IOUs. An IOU is a tradable promissory note issued by exchanges for tokens not yet officially launched, representing a future delivery of the actual tokens.

The current Pi IOU trading price is approximately $41.42. However, based on this, the fully diluted market cap would exceed $4 trillion, which is clearly unrealistic. More concerning is that the trading volume of IOUs in the past 24 hours is less than $400,000, a stark mismatch with the purported market cap. This indicates that the current IOU price is significantly overestimated, and investors should be aware of the risk of price correction upon official listing.

Authenticity Assessment of the Project

Analysis of Potential Scam Concerns:

The authenticity of Pi Network can be verified from multiple angles. First, the core team’s background is transparent; all three founders are PhDs from reputable universities with clear resumes. This contrasts sharply with anonymous scam projects. Second, mining participation requires no upfront investment; users only need to use the mobile app, with no need for the capital input typical of scam schemes. Third, the project team maintains ongoing communication with the community, with transparent development progress, unlike the opaque and closed nature of scams.

Overall, Pi Network is highly likely to be a genuine and credible crypto project, and investors need not worry about obvious scam risks. However, it is important to note that during KYC verification, investors are required to provide sensitive personal information, so appropriate measures should be taken to protect this data from leaks.

Investment Decision Recommendations

Pi coin is not a scam, but it is also not a risk-free investment. The main risks at this stage include potential delays in mainnet migration, overestimation of IOU prices leading to future corrections, and market liquidity issues. Investors should thoroughly understand the project’s progress, complete identity verification, and make decisions based on their own risk tolerance.