Pi Coin: All you need to know about one the most talked-about crypto projects

For years, Pi Network has been one of the most talked-about crypto projects, yet one of the most controversial. 

Unlike traditional cryptocurrencies that require expensive mining equipment, Pi Network allows users to mine its native token, Pi, using just their mobile phones. This model attracted millions of users, many hoping they were early adopters of the next big cryptocurrency.

However, for a long time, Pi was a closed ecosystem. While users accumulated the tokens couldn’t trade them on any major exchange. That finally changed on February 20, 2024, when Pi Network launched its Open Mainnet, officially enabling trading on external exchanges.

What followed was a cocktail of excitement, disappointment, controversy, and speculation. Some saw the listing as a milestone, while others saw it as proof that Pi was never what it claimed to be.

Before analysing the listing, let’s look at Pi’s journey over the years. 

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The journey to Pi exchange listing

Pi Network was founded in 2019 by a team of Stanford graduates, who promised to make crypto accessible to everyone by allowing mining on mobile phones. The project grew rapidly, thanks to an aggressive referral-based model that rewarded users for inviting others to join.

By 2021, the project had over 30 million users (or “Pioneers,” as they are called). However, despite its growing community, the network remained in its “Enclosed Mainnet” phase, meaning users could not trade their tokens outside the ecosystem.

For years, critics questioned whether it was a legitimate blockchain project or just an elaborate marketing scheme. While the team continued to work on building infrastructure, users grew frustrated with the delays in launching an open network where they could finally use or sell their tokens.

That frustration peaked in December 2023, when rumours surfaced that the long-awaited Open Mainnet launch had been postponed, yet again. However, the team reassured users that the launch was coming soon. 

Finally, on February 20, 2024, the team announced that they had officially launched the Open Network, meaning users could now transfer their mined tokens out of the ecosystem and trade them on centralized exchanges (CEXs).

Related post: Pi network launches officially, opens trading to CEX

The listing and a 65% price crash

Once the Open Mainnet was live, several major crypto exchanges including OKX, MEXC, Bitget, and BitMart quickly listed the token for trading. This was a moment of celebration for many users who had waited years for this opportunity.

However, the excitement didn’t last long.

In the hours following its listing, Pi’s price soared to $1.84 but then came crashing down, dropping over 65% to $0.64. Some traders managed to cash out, while others were left holding tokens worth significantly less than they had hoped.

One of the biggest reasons for this sharp price drop was low liquidity. While millions of users had mined the coin over the years, only about 1 billion tokens out of 9.7 billion were initially available for trading. This restricted supply, combined with speculative trading, created extreme volatility in the market.

Meanwhile, some exchanges, like Bybit, refused to list the coin at all. Bybit’s CEO, Ben Zhou, even accused Pi Network of being a scam, citing a warning issued by Chinese authorities in 2023 that labelled it as a “fraud targeting elderly investors.”

In response, the creators did not issue any formal statement addressing these allegations, adding to the scepticism surrounding the project.

The Binance debate over Pi’s legitimacy

While some exchanges listed Pi immediately, Binance, the world’s largest crypto exchange, took a different approach. Rather than making an executive decision, Binance decided to let its users vote on whether it should be listed on the platform.

This move was seen as an attempt to gauge real user interest in the Network while also avoiding potential backlash if the project turned out to be problematic. The voting results are set to be announced on February 27, 2024.

The debate over its legitimacy is far from settled. While the project claims to have over 60 million users, blockchain explorers only show about 9.1 million active wallets, which raises questions about how many users hold or use the token.

Moreover, despite claims of decentralisation, Pi Network is still largely controlled by its core team, with no clear indication of when true independent validators will join the network.

What’s Next?

With the token now trading on major exchanges, many wonder what comes next. 

The first issue is if the price will recover. its price is currently unstable, fluctuating between $0.65 and $1. The future price depends on liquidity, exchange support, and user demand. If Binance lists, it could boost confidence and drive up the price.

Also, there are concerns about the Network proving Itself as a real blockchain. Critics argue that its economic model resembles a pyramid scheme, where users recruit others in exchange for rewards. So, Pi’s success depends on whether real-world businesses adopt it as a means of payment.

About more exchanges listing, Binance’s upcoming vote result will be crucial. If it is listed on Binance, other major platforms like Coinbase and Kraken might follow. However, if Binance rejects it, other exchanges may hesitate to list it as well.

Ultimately, many users mined Pi for free, so some may sell immediately or soon to cash out. Others may hold, hoping that the price will rise in the future. The success of its lock-up program, which incentivises users to keep their tokens, will play a role in price stability.

Lastly

Pi Network’s journey has been long, controversial, and filled with speculation. Its Open Mainnet launch and exchange listing are significant milestones. But, they have also exposed weaknesses in the project’s economic model and liquidity.

For now, the token remains a high-risk, high-reward asset. If the project delivers on its promises, it could become a major player in the crypto space. But if it fails to build a strong ecosystem with real-world use cases, it may join the list of overhyped projects that ultimately fade away.

As the dust settles on its rollercoaster listing, all eyes are on Pi Network to see whether it can truly revolutionise crypto, or if it was just another speculative bubble waiting to burst.