Is Pi Network a Scam? This is the Analysis!

Bittime - Pi Network is a crypto asset project that offers the concept of easy mining via mobile phone. Since its inception, the platform has attracted worldwide attention. However, is Pi Network a Scam? Check out the analysis in this article.

With the slogan "mining crypto from cellphones without electricity costs," this application has managed to reach tens of millions of users since its launch in 2019. 

However, behind its popularity, a fundamental question arises: is the Pi Network truly a revolutionary innovation or just a cunning strategy to collect user data without providing a profit? Here, we will analyze in more depth the claims and criticisms about the Pi Network scam.

Why Does Pi Network Look Attractive at First? 

Created by a team of Stanford graduates, Pi Network takes a seemingly friendly approach to users new to the world of crypto. With just the press of a button each day, users can “mine” the Pi, without the need for special hardware or high electricity costs like Bitcoin or Ethereum mining. 

However, years passed without the promised significant developments, particularly the ability to trade tokens on crypto exchanges. 

Users still collect Pi tokens in the same way. But this token cannot be traded yet, even after almost five years of operation.

Balso: What is MEMEFI Token and its Tokenomics?

Why Spend 5 Years to Launch? 

According to reports, Pi Network is planning a mainnet launch in December using the Stellar Consensus Protocol (SCP) — a blockchain technology that has been around since 2014, introduced by the Stellar network. 

While using open-source technology is not a problem, it does beg the question, why should users wait years for a technology that is already available?

Is it possible to "mine" Pi from a cellphone?

One of the main attractions of Pi Network is the concept of "mobile mining" or mining via mobile phone. However, please note that this is actually a simulation. 

Pi mining on mobile is not an actual mining process that validates blockchain transactions. To actually mine the Pi, users must operate their software nodes on the computer. In other words, the activities performed on the phone are only part of the simulation.

Balso: NEIROETH Price Analysis Rises 50%, Here's Why!

Suspicious Pi Network User Numbers

Pi Network claims to have more than 60 million users worldwide. However, only around 6 million active wallets are recorded. 

This suggests that the majority of users may simply sign up, try the app, and then abandon it. 

The number of active users is very low compared to their claims, raising suspicions about whether the numbers are deliberately exaggerated to attract more attention.

Pi Network Future Value Expectations 

Pi users often search for token prices on CoinMarketCap, and find a token called "Pi" priced at around $34.45. Unfortunately, this token is not related to the Pi Network. 

To date, the Pi Network team has not launched the token on any crypto exchange, and their official token is still not tradable. Despite this, the Pi user community is actively speculating that the token price will reach $10 to $100 per token or even higher. 

However, if we look at the launch history of other coins with a “tap-to-earn” system, almost all of them experienced a drastic drop in value soon after launch.

Pi Network Makes Money Without Selling Tokens?

Even though they don't sell tokens directly, Pi Network seems to make a profit through advertisements that appear on their application. With millions of users opening apps every day, advertising revenue can be huge. 

Additionally, there are concerns that Pi Network may be monetizing user data. This application collects very extensive data, from browsing history to user location data. 

In fact, in the KYC verification process, users are required to upload government ID photos and selfies, which makes some parties question the real purpose of this data collection.

So, Is Pi Network a Scam? 

Although there is no evidence that Pi Network has broken the law or solicited real money investments from its users, the project raises serious doubts. The users may not lose any money. 

However, they lose their time and personal data which could be an unconscious "currency". Pi Network, although not as malicious as other scam projects, still has questionable credibility.

In the end, despite all the anticipation, Pi Network remains a big question mark for many people. Are they really going to launch a tradable token or keep delaying for some reason? Let's just wait.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.