With the rise of cryptocurrencies, Pi Network has emerged as one of the most controversial projects. While its founders promote it as a “revolution in mobile mining,” serious questions are being raised about its legitimacy and true value. This article unveils the dark sides of this currency, and analyzes its future based on documented facts and warnings.
1. Suspicious Mechanism: Effortless Mining or Marketing Ploy?
Pi Network adopts a model that promises users to earn coins by clicking daily in the app, without the need for expensive mining hardware or energy consumption. But this mechanism raises serious doubts:
- Lack of real value: The currency does not rely on a public, auditable blockchain, but has been centered in a closed network (Testnet) for years, which makes it more like a fake currency that cannot be transferred or used in real life.
- Network marketing: Its model is based on recruiting users through the “ambassadors” system, where they receive rewards in exchange for attracting new members. This is a model similar to Ponzi schemes that rely on horizontal expansion rather than real productivity.
2. Fraud Warnings: Between Stolen Data and False Promises
Pi Network makes headlines with security warnings:
- Data breach: Reports indicate that the app may exploit phone permissions to collect personal information or run hidden processes, putting users at risk of identity theft or malware.
- Exaggerated promises: Promoters promote imaginary prices (such as $600 per coin), while realistic analysis indicates that its value may not exceed $0.1 after the actual launch, if it happens.
- Pending Mainnet: Since its launch in 2019, Pi Network has not fully transitioned to Mainnet, making the coin untradable on major exchanges and keeping its value hostage to promises.
3. Technical and economic risks: Why is Pi Network not secure?
- Lack of decentralization: Despite claims of decentralization, the company controls the issuance and distribution of the currency, which contradicts the principle of real digital currencies.
- Catastrophic inflation: With an expected supply of 100 billion coins, it will be impossible to achieve price stability without an effective burning mechanism, which the network has not yet demonstrated.
- Legal regulation: The currency faces the risk of being banned in many countries due to its non-compliance with anti-money laundering (KYC) regulations and lack of transparency.
4. Future expectations: between collapse and “catastrophic failure”
Based on the analysis of the above factors, the outlook looks bleak:
- Collapse scenario: With the mainnet launch promised in February 2025, the coin could see a sharp decline due to the market being flooded with billions of pre-mined coins, especially with the withdrawal of “whales” who control large stakes.
- Loss of trust: Increasing complaints about the inability to withdraw funds or transfer currencies may lead to a mass collapse of users, as happened with similar projects such as BitConnect.
- Pessimistic price forecasts: Even in the best case scenario, AI models like DeepSeek suggest the price could be between $10 and $50 by 2030, a small number compared to the promises being promoted.
5. Tips for investors: How to avoid the trap?
- Stay away from phone mining: Mining currencies via phones is technically infeasible, and is often a cover for exploiting the device’s resources.
- Transparency check: Any currency without an open blockchain and clear transaction history is a suspicious project.
- Diversify the portfolio: Do not rely on one project, especially if it is based on unproven promises.
Conclusion: The illusion of quick wealth and a potential financial disaster
Pi Network is just one in a long line of “digital promises” that exploit the dream of getting rich quick. While some founders may succeed in making money through crowdfunding, the average user will be the biggest loser. Before investing, remember: not all that glitters is gold, especially in the world of cryptocurrencies.
