Pi Network Faces Centralization and Legal Concerns Amid Heavy Reliance on Vietnam
Pi Network, a widely followed cryptocurrency project, is drawing increasing scrutiny over centralization risks and potential legal challenges. Recent data from PiScan reveals that Vietnam hosts 154 out of the network’s 319 active nodes—accounting for approximately 48.2% of its global infrastructure. This geographic concentration raises concerns about the network’s resilience and decentralization.
More troubling is the report that both of the project’s validator nodes are under the control of Pi Network’s core development team. Such control undermines the decentralized ethos that blockchain technology is built upon, prompting questions about governance and transparency.
Adding to the complexity is Vietnam’s regulatory stance on digital currencies. Pi Coin, like other cryptocurrencies, is not recognized as a legal means of payment in the country. This creates potential legal risks for users, including the possibility of fines or criminal liability for those using Pi in transactions.
The project also faces criticism over its token distribution model. Reports suggest that more than 60% of Pi Coins are held by the Pi Foundation, leading to skepticism about fairness and decentralization. Some community members have even alleged that tokens have been sold internally—claims that, if true, could erode trust in the project.
To maintain its credibility and foster global adoption, Pi Network must take urgent steps to address these centralization issues, provide greater transparency in its tokenomics, and ensure compliance with local regulations. The decisions it makes next will be pivotal to its long-term viability and reputation.
