As Pi Network nears its highly anticipated mainnet launch, investors and enthusiasts are eager to understand its fundamentals. Here are the top five crucial facts to know before investing in Pi Coin.
1. Pi Coin Tokenomics
Pi Network has a total supply of 100 billion tokens, distributed as follows:
- Mining Rewards (65%): 65 billion Pi are allocated for users contributing to the network through mobile mining, referrals, and running nodes.
- Ecosystem Building (10%): 10 billion Pi support community initiatives and dApp development.
- Liquidity Pool (5%): 5 billion Pi provide liquidity for transactions within the ecosystem.
- Core Team Allocation (20%): 20 billion Pi are reserved for the Pi Core Team, subject to a vesting schedule aligned with community distribution.
As of December 2024, approximately 562 million Pi coins are unlocked and in circulation. A notable percentage of Pioneers have opted for long-term lock-ups, with many choosing a three-year period.
2. Allegations of a Data Leak
In May 2021, reports surfaced alleging a 17GB data leak containing personal details of 10,000 Vietnamese citizens. The leaked data reportedly included identity cards, home addresses, phone numbers, and emails. While the source of the breach was attributed to Pi Network, the project denied any involvement, stating that its KYC process was handled by a third-party service, Yoti. Following an internal investigation, Pi Network and Yoti both refuted claims of a data breach.
Pi Network or its third-party KYC provider has nothing to do with the recent alleged data leak of Vietnamese national IDs.
— Pi Network (@PiCoreTeam) May 21, 2021
Pi Network never asked for or collected such data and our third-party KYC provider does not accept this type of ID documentation. pic.twitter.com/8YUOyljay8
3. Accusations of a Pyramid Scheme in China
Pi Network has faced scrutiny in China, with authorities suggesting it operates as a multi-level marketing (MLM) scheme. In July 2023, the Public Security Bureau of Hengyang City labeled Pi Coin as a scam, citing its referral-based mining system. Several analysts, including Colin Wu and AB Kuai.Dong, have warned about its legal risks in China. In response, Pi Network restricted trading in certain regions, and exchanges like OKX have confirmed that Pi requested isolated listing methods.
4. Pi Network’s Massive Popularity
Despite delays in its mainnet launch, Pi Network remains one of the top five most followed crypto projects on X (formerly Twitter), with 3.7 million followers—more than Ethereum and Solana. The Pi mobile app has also surpassed 100 million downloads, with strong adoption in South Korea and India.
5. Pi Coin’s Price Speculation
Currently, Pi Network’s OTC price is around $2 per Pi token, while its IOU price on exchanges like HTX (formerly Huobi) is approximately $64. Pi’s massive user base of 45 million engaged users fuels speculation that its mainnet launch price could range between $30 and $50, according to BeInCrypto analysts. However, most Pi remains locked, potentially influencing its price dynamics upon full network activation.
Also Read: Pi Network: Legit Cryptocurrency or Scam? Analyzing the Growing Controversy and Market Momentum
Pi Network is one of the most controversial yet widely anticipated crypto projects. While its tokenomics, popularity, and price potential make it an attractive investment, concerns over data security and regulatory scrutiny remain. As the mainnet launch approaches, investors should stay informed and exercise caution before making financial commitments.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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