Pi Network has gained popularity in the past six years, making it one of the industry’s leading cryptocurrencies yet to be fully launched. In this period, it has attracted millions of users from around the world who have downloaded its applications and become part of the community.
Is Pi Network a pyramid scheme?
A common question among many users is whether the Pi Network is a pyramid scheme because of how it works. For starters, Pi is a crypto project that solves the mining difficulty challenge by making it easy for people to mine using their smartphones.
But for this mining to happen, one needs an invite code from another person, who then receives some bonus Pi Coins when the invitee mines. This is precisely how many pyramid schemes work since inviting people to join the network becomes more lucrative.
However, there is a difference in Pi Network’s case for two reasons. First, you don’t need to make any payment when you invite people to join the network. It is a free process; your only reward is the Pi Coins from the people you invite.
Second, Pi does not make invitations the central part of the business, as most pyramid schemes do. Instead, it focuses primarily on mining activities and creating an ecosystem for the network. Therefore, the Pi Network is not a pyramid scheme.
What is the outlook of the Pi Coin?
Users also have questions about the outlook of the Pi Coin, which has been envisioned as the most accessible cryptocurrency.
For now, Pi Coin is just a digital token that cannot be used to handle transactions because it has remained in an enclosed mainnet for years.
The developers have used the enclosed mainnet to encourage developers to build applications on the network. They have also used the phrase to conduct Know Your Customer (KYC) verification on their users.
Altogether, they have pledged to move from the enclosed mainnet to the real mainnet once they achieve three goals. First, they hope to verify as many pioneers as possible. They have now verified over 6 million users.
Second, they hope that an ecosystem will provide utility for Pi Coin. Finally, they will launch the mainnet when the market is good, such as during a bull run in the crypto industry.
Therefore, whether the Pi Coin price will rise or fall after the mainnet launch is still being determined. I suspect it will trade as other new tokens do after their airdrops. It will initially increase and then crash hard as many pioneers liquidate. After that, it will move in sync with other cryptocurrencies.
The same situation has happened among recent airdrops like zkSync, Wormhole, and LayerZero, which rose initially and then tumbled.
