Everything you need to know about Pi crypto
Pi crypto is the native cryptocurrency of the Pi network, a blockchain that enables users to execute mining operations through their smartphones.
The network has grown in popularity due to the ease with which it allows anyone to mine its native cryptocurrency. It currently boasts more than 33 million users across the globe.
However, its sudden rise in popularity has led some experts to question its legitimacy, especially because, while it was announced four years ago (2019), it still has yet to launch its blockchain or cryptocurrency.
Here's the info you need on Pi crypto and its network.
How the Pi Network works
The blockchain uses a consensus mechanism called the Stellar Consensus Protocol (SCP), enabling users to receive rewards for contributing to it. The more a user contributes to it, the more Pi cryptocurrency they mine.
The SCP is a decentralized, open-source protocol developed by the Stellar Development Foundation, an organization supporting the development and growth of the Stellar Blockchain.
The protocol is more secure, faster, and designed to be more scalable than other consensus mechanisms like PoW and PoS.
Pi allows four roles for users:
Pioneers (Miners): Users who perform mining activities on Pi. They have to verify they are human and not robots every 24 hours of their mining activity on the blockchain by clicking the lightning button.
Contributors (Securers): Users who provide a list of trustworthy users to Pi in exchange for incentives. Contributors belong to the security circle that consists of three to five users. They help secure Pi.
Ambassadors (Distributors): Participants who bring new users to Pi using their referral codes. The higher the number of the invitee, the larger the earning rate of an ambassador. They help the blockchain grow and distribute Pi crypto widely.
Nodes (Validators): Participants using the Pi node software on their computers. By running a node, validators get an additional boost in their Pi mining process.
To get the most out of Pi, users must endeavour to hold many roles simultaneously. A Pioneer can become a Contributor by actively mining for Pi crypto for three days.
A Contributor becomes an Ambassador by inviting new users to Pi using their referral code. To become a validator, one has to simply run the Pi software node on their desktop or personal computer.
The Pi network was founded by Dr. Nicolas Kokkalis and Dr. Chengdiao Fan, two Stanford Ph.D. holders in Computational engineering and Social sciences.
Dr. Kokkalis is the head of technology for Pi. He is credited with developing and founding several startups and human-centered technologies before Pi. He is also an instructor of Stanford’s first decentralized application class.
Dr. Fan is the blockchain’s head of product. Her history can be traced to working as a founding developer for several startups, as well as projects focused on scaling social communications and surfacing untapped social capital for people around the world.
The two began working on the blockchain in 2018 and released a whitepaper of the Pi Network app on 14 March, 2019, (Pi Day).
What is the value of Pi crypto?
As of writing, Pi cryptocurrency is not listed on any crypto exchange. It is, therefore, currently worthless to anyone in possession of it. There is no historical data on its market performance since it has not yet been launched on any cryptocurrency exchange.
Its creators are yet to reveal how many of the coins are in public circulation. Its maximum supply cap is also yet to be determined.
In December 2022, the Pi token was in the headlines after several crypto exchanges, including Huobi Global, BitMart, and XT.com, announced its listing. The news saw the tokens' price surge by 461.3% from $44.03 to $232.97, according to CoinGecko.
However, Pi Network developers quickly pointed out that they hadn't endorsed any exchange listing and warned users against engaging with any of the exchanges.
While the coin can’t be traded on any cryptocurrency exchange, according to Coinmarketcap, it is currently worth $26.45 and is ranked the 2,886th largest cryptocurrency, with no market cap, however.
How to get Pi crypto
To start mining Pi coins, one has to first download the Pi Network app on its official site. It is free to download and use the app.
Once it's on your phone, create a user account. The process will require you to create a username and password and enter your email address or phone number. You will be required to enter an invitation code, which is easily available online.
You can then start mining Pi coins by tapping the lightning button on the app. You will have to tap the button after every 24 hours to keep mining.
You can earn more Pi coins by proposing valid security circle connections and inviting people to mine the tokens through referral codes and mining concurrently with them.
You can also earn more Pi crypto by setting and committing to lockup configuration or increasing your current lockup commitment, using apps on the Pi Browser directory, and running a node.
Pi Network milestone
The Pi Network is still a young player in the cryptocurrency market. However, it has quickly managed to attract the attention of many people due to its several advancements.
In September 2022, it launched Pi Connect, a service that addresses its crypto limitations and offers users a place to access Pi's price information and conversation rate of other cryptocurrencies.
Pi Connect also allows users to make interoperable trades with other blockchains like Polygon, Ethereum, and Binance Smart Chain quickly, affordably, and securely.
The same month it also announced Pi Bridge, which will provide a bridge between the Pi network and other blockchains, beginning with the Binance Smart Chain.
Is Pi crypto a scam?
The sudden rise in popularity of the Pi coin has made several experts do a deep dive into the project and question its legitimacy.
A major concern about Pi is its multi-level marketing scheme. The fact that users can earn more Pi coins by recruiting other users is a red flag to many people. It makes the project look like a pyramid scheme.
Another concern is that users, at the moment, cannot withdraw their mining profits. This is because the network is currently in Enclosed Mainnet.
According to Pi developers, the blockchain will be updated to Open Mainnet in the future. Then, users will be able to withdraw, sell, and exchange Pi cryptocurrencies. However, there is no clear date when the blockchain will properly launch.
The cryptocurrency is also not listed on any exchange, which is another red flag for some people. But, this is because its blockchain is currently in Enclosed Mainnet instead of Open Mainnet.
For its proponents, there is no reason for concern. The fact that the project is free to use debunks the notion that it is a scam. Everyone participating in its mining process has nothing to lose but the time spent mining the coins.
The coins also have the backing of impressive Stanford minds. That its development team managed to successfully introduce an enclosed mainnet and a Pi wallet in December 2021 proves the project is here to stay.
The future of Pi crypto
Since the cryptocurrency has not been launched, no price predictions are available. The coins also have no price history, making it hard to analyze and predict how they may react to market movements in the future.
Will the Pi cryptocurrency ever have value? It’s hard to tell at the moment. It might or might not launch. Some people believe it is just a social experiment. However, if it is launched, those already holding it might benefit.
If history has taught cryptocurrency investors anything, it is that highly anticipated projects, when initially listed in crypto exchanges, experience price surges in the first few weeks. There is a possibility of profiting from the coins, but only if they launch.
All in all, it is worth being cautious when dealing with such speculative cryptocurrencies. Only time will tell if Pi crypto is a legitimate cryptocurrency or a scam.
On the surface, the Pi Network looks like an impressive crypto project seeking to usher everyone effortlessly into the crypto space. It is accessible to everyone around the globe, it is free to use, faster than any blockchain network, and it uses less energy than conventional energy systems.
However, considering how long the project has been in the market and how little it has to show, there are a few reasons to be wary about investing in it. It is wise to take your time before jumping into the hype around Pi cryptocurrency.
Author: Jay Jackson
Jay Jackson is a crypto trader, researcher and freelance writer. He works closely with people and businesses in the crypto sphere, writing blog posts, guides, press releases, reviews and ebooks.