PI is a community driven token that claims to take proof of work through mining and make it better than the traditional bitcoin mining.
The Pi network has been in operation for about 6 years now and cliams to have over 40 million users with about 10% actively mining the PI coin on thier app.
The Blockchain technology of PI is a complete replica of the XLM (Stella Lumen) blockchain technology and not a hard fork as most people say.
The original idea of the PI network is to create a community driven ecosystem and this can be said to be the utility of the project, its commited users.
The PI team claims to solve the problem of Bitcoin, which is its complex mining algorithm and claims to also be completely decentralized but this is definitely not the case.
Why you may ask, there are several factors that shows that the PI network is not decentralized, the first is the intergration of the KYC system which firstly means that the users information is no clearly available to the system and secondly the use of human validators to validate users KYC's submission, which is also likely to cause a level of security issues.
Talking about the utility of the Pi token been superficial, and its utility been more community driven, here are some of the valid reasons for this assumptions.
Firstly, the blockchain infrastructure they claimed to have built for the Pi network, turns out to be a clone of the XLM (Stella lumen Blockchain Infrastructure) which raises the question, is this how much Stamford's elite can do. This then births the idea of the team not paying much attention to blockchain solutions but rather to the community building.
This can also be seen from the Pi app itself, as the app still has major issues with KYC verifications, Mainnet Migrations and lacks much creativity as regards the apps aesthetics.
Another important point to consider is the #PiCoreTeam behind the project. Dr. Nicolas Kokkalis, the head of technology at Pi Network has a track record of focusing on crowdsourcing, automation, minimzing users effort while maximizing engagement.Some of his project include TaskGenies & EmailValet.
The head of product for PI Dr. Chengdiao Fan is a Phd holder in Anthropologial science, specializing in human behaviour and human group studies. This only goes further in giving a clear definition about what the PI network is mainly about.
Finally the cherry on the cake is a phrase that is starting to spread in the PI community and its called GVC Meaning Global Value Chain.
What does this mean, you may ask, it means that even though the original market value of PI coin is not up to $314, users/community members should all agree to buy the coin at a fixed price of $314. This will in turn pool more liquidity into the Pi Ecosystem and in turn drive the price up.
The disadvantage of this is, it will lead to a quick collaspe of the PI market, as there is not system that is put in place to ensure that the coins are sold and bought at the agreed upon price. The GVC system is therefore not a sustainable one as it relys solely on the community members loyalty and trustworthiness in the market.
In conclusion, the #pi coin might not have as much future prospect as many might think it has, and it is very likely the value will only continue to decline after its listing. For those that have mined the project, congratulations to you, the next step is to take your yields first and maybe leave a little while watching how the project develops.
In our next article we will be breaking down the PI coin Market tokenomics, helping you make a better decision.
