Pi Network reaches 10M KYC'd users, but token is still not tradeable

Approximately 10 million people have signed up for the Pi Network app and successfully passed the identity verification process called Know Your Customer (KYC), as stated in a recent update from April 16th.

The Pi team has announced that they will introduce a mainnet and make their tokens exchangeable once certain achievements are met. These milestones include the verification of 15 million users through Know Your Customer (KYC) process. With 10 million verified accounts already in place, it means that this target will be hit when approximately 5 million more users finish the KYC procedure.

Although AIMultiple has celebrated a significant milestone, they have argued that using Pi, the cryptocurrency developed in the app, may not benefit users at this time. The reason being, users are currently unable to swap their Pi coins for fiat currency on any exchanges. Launched in 2019, Pi Network operates as a centralized application where users generate new Pi tokens by interacting with the app daily. However, at present, there is no functionality allowing users to transfer or exchange their Pi tokens among themselves through a digital wallet.

Based on the news update, around 10 million users, referred to as “Pioneers,” have successfully gone through identity verification using the app’s own identity verification system, Pi KYC. This method offers a distinctive and exclusive approach that integrates automated machines and local human verification in crowdsourcing, ensuring secure, precise, and efficient Know Your Customer (KYC) processes.

Dr. Nicolas Kokkalis, one of Pi’s co-founders and tech leaders, expressed that this advancement signifies the industry’s independence from traditional fiat services for prosperity. Moreover, he announced that the innovative KYC system developed by Pi will enable various Web3 asset ownership services to verify identities effectively.

In December, the team revealed their intention to introduce their “Open Network” or mainnet in the year 2024 under certain prerequisites. These requirements consist of the development of 100 applications based on Pi, and 15 million users completing KYC (Know Your Customer) verification. Furthermore, all necessary technological, product, business, and legal tasks must be accomplished, and no adverse external conditions should impede the network’s prosperity. The team has not set a definitive launch date for the mainnet yet.

Cem Dilmegani, an analyst from AIMultiple, expressed his doubt that Pi Network would bring substantial benefits to its users. He explained, “The structure of Pi Network resembles a multi-level marketing scheme, where the main gainers are expected to be the founders.” The affiliate marketing system in place is utilized to attract new users to the app, which subsequently generates revenue through advertising sales for the app’s developers. Dilmegani pointed out that the founders have already been profiting from the app, having introduced optional video ads at its launch to monetize the existing user base.

Dilmegani admitted that the Pi team might eventually introduce a blockchain mainnet. But, he expressed skepticism towards this possibility, explaining that it could lead to a rapid decrease in the token’s value as users sold off their holdings. Consequently, the coin would no longer be worth keeping for users, potentially rendering the app useless for advertisers.

CryptoMoon contacted Pi for their perspective. The Pi team representative admitted that their blockchain development method is “uniquely innovative,” including the introduction of a “preliminary Enclosed Network phase” instead of releasing an open network right away. This unconventional move aims to support “the creation of tools on the platform and KYC verification for our massive user base,” ultimately contributing to the community’s efforts in establishing a strong network before launching the Open Network.

The spokesperson explained that Pi has achieved various milestones since its debut, like the “Pi Mining mobile app, Pi Browser mobile app for accessing Web3, Node application, Testnet and Mainnet blockchains, a wallet, developer platform, and an innovative KYC solution,” among other things. The representative defended the choice of not immediately launching an open network, believing that “every valuable thing requires time and perseverance, which are crucial for a successful introduction of the Open Network.”

Based on an article published by vnExpress on March 3, 2021, Pi Network is the 22nd most popular iOS app in Vietnam in terms of downloads. Nevertheless, a Vietnamese news source revealed in May 2021 that Pi unintentionally disclosed images of users’ identity cards to a hacker. However, a representative from Pi Network clarified that KYC (Know Your Customer) processes were managed through a third party and the app does not keep this sensitive data on its servers. There was no proof of a data breach.

2024-04-18 00:46

Pi Network reaches 10M KYC’d users, but token is still not tradeable

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