Successful Marketing Case and Compliance Analysis of Pi Coin

Pi Network is a typical grassroots viral marketing success case in the blockchain field. It encourages users to actively promote by offering an extremely low entry threshold of 'free app download and daily mining clicks,' combined with an invitation mechanism to accelerate mining, resulting in viral growth. At the same time, it emphasizes 'future potential' rather than immediate value, leveraging FOMO psychology to guide users to continue participating. The official promotion consistently maintains the stance of 'free mining,' avoiding involvement in fundraising, thereby effectively mitigating the risk of illegal fundraising.

The design of Pi Coin is very clever: there is no fundraising, no promise of fixed income, and no centralized fund pool. Therefore, even though regulatory agencies worldwide have warned of risks, it has not been formally classified as illegal fundraising due to a lack of substantial legal basis. The project's main entity is located overseas, which also increases the difficulty of regulatory intervention.

A top-tier exchange launched IOU pre-trading for Pi Coin at the end of 2023, despite the Pi mainnet not being fully open yet. The primary reason behind this move is the tremendous traffic from over 75 million real KYC-registered users of Pi Network. By launching Pi in the form of IOU, the exchange meets the genuine trading needs of the market while avoiding regulatory pressure from on-chain deposits and withdrawals. Additionally, the Pi project party implicitly allows trading, boosting community enthusiasm.

Overall, Pi Coin successfully attracted the attention of top exchanges by relying on outstanding social virality, compliant edge operations, and a large community size, becoming a rare case of success in both marketing and compliance in the cryptocurrency industry.