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Pi Network presents itself as a revolutionary cryptocurrency project that allows users to mine coins directly from their mobile phones. Sounds amazing, right? Unfortunately, when you take a closer look, many start to notice that the project bears suspiciously similar characteristics to pyramid schemes. On top of that, the ongoing KYC (Know Your Customer) issues continue to prevent a large number of users from actually using their tokens.
A Pyramid Model in Disguise: More Than Just a Referral System
From the very beginning, Pi Network has placed enormous emphasis on recruiting new users, with each referral increasing the mining speed of the recruiter. This means that those who joined earlier have a significant advantage over those who came later—a classic trait of pyramid schemes.
Unlike decentralized cryptocurrencies, where the distribution of coins follows fixed rules, Pi Network mainly rewards those who bring in new members. In practice, this means that the system relies on continuous recruitment, raising concerns about its long-term sustainability.
Of course, every cryptocurrency needs adoption, but in Pi Network’s case, its main driving force is user growth, rather than technological progress or real network usage. When the influx of new users slows down, so does the motivation for mining. We’ve seen this happen before with many fraudulent projects that eventually collapsed due to a loss of trust.
KYC Issues: Why Can’t Users Access Their Coins?
Another major red flag for Pi Network is its KYC verification process, which is required to withdraw and transfer tokens. In theory, this is an anti-fraud measure, but in practice, it has proven to be inefficient and chaotic.
Thousands of users report that their KYC verification has been stuck for months, while others don’t even have the option to start the process. As a result, a large portion of mined Pi coins remains locked, leaving users unable to use or trade their holdings.
This issue became even more frustrating when Pi Network became tradeable on centralized exchanges (CEXs). Many users are now watching others sell their coins and cash out profits, while they themselves remain stuck in the KYC phase with zero access to their funds.
Uncertainty Around Decentralization and Network Governance
One of the key pillars of cryptocurrencies is decentralization, where no single entity controls the network. However, in Pi Network’s case, things are far from clear.
Although the project markets itself as a decentralized cryptocurrency, all major decision-making power still lies exclusively in the hands of the development team. Users have no real influence over the ecosystem, and there is no community governance model like those seen with Ethereum or Bitcoin.
Additionally, it is still unclear how the network will truly function in its fully decentralized phase. The project’s whitepaper remains vague, and rules and policies seem to change frequently. This raises concerns about whether Pi Network will ever achieve full decentralization or if it will remain a closed system controlled by a select few.
Conclusion: Is This Really a Revolutionary Cryptocurrency?
Pi Network presents itself as an innovative project, but in many ways, it still resembles a classic pyramid scheme. The combination of an aggressive referral-based system and ongoing KYC problems raises serious doubts about whether this is just another cleverly designed trap to keep users in limbo.
Moreover, the lack of decentralization and unclear network governance add even more uncertainty. Until Pi Network can fully resolve KYC issues and clearly define who actually controls the network, it remains a highly risky venture.
