From the start to the last controversial listing

From the start to the last controversial listing

PI Network is a controversial cryptocurrency project that has made the round in the crypto industry in the past few weeks after the token was noted on some crypto bonds, including the popular trading platform Huobi.

Since its foundation four years ago, the project has attracted millions worldwide because users can dismantle and earn their native tokens, called PI, by doing simple tasks.

Some experts have expressed concerns about the legitimacy of the PI network and claims that the project is nothing more than a classic snowball system that aims to defraud investors in the long term. But is that true? Let's see.

This article reveals everything about the PI network, from its beginnings to its latest controversial listing.

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What is Pi network?

PI Network is a cryptocurrency project that enables users to carry out mining operations via their smartphones. The platform was developed to get into the crypto room, regardless of its familiarity with digital assets.

pi Network is the idea of ​​graduates from Stanford University - Nicolas Kokkalis, Chengdiao Fan, Aurélien Schiltz and Vince McPhillips. The team started developing the project in 2018, but published the white paper and started the application a year later, on March 14, 2019.

miner in the PI network are rewarded with the PI Coinvon to claim the creators of the project that it will gain value as soon as the protocol is launched in the maximum.

Pioneers are called people who dig in the PI network. The project claims to simplify the mining process, as pioneers only have to type on a button every 24 hours to carry out mining activities via their smartphone. The mining process is carried out in the PI Network app that is available for Android and iOS devices.

The project uses a multi-level marketing approach (MLM) to increase its user base. To clarify: An MLM, similar to a pyramid system, is a controversial marketing strategy, in which existing users are rewarded to invite new users to the ecosystem. The new members, in turn, are commissioned to take more people on board.

In the case of PI Network, existing users (referrers) receive more PI coins if you invite new users (referees) to join the network. If the referee of the platform joins and becomes active, the referrer receives a certain percentage bonus on its daily mining.

This scheme has made it much easier to grow the project's growth. The ecosystem is currently being advertised with more than 35 million active global users.

How does the PI network work?

PI Network claims to use a consensus mechanism called Stellar Consensus Protocol (SCP). SCP is an algorithm that enables users to receive rewards for contributions to the network. The project claims that SCP is faster, safer and scalable than other consensus mechanisms such as proof-of-work (POW) and Proof-of-Stake (POS).

The PI Network Community consists of four roles:

• pioneers (miner)
• participating (safe)
• ambassador (dealer)
• knot (validators)

pioneers (miner)

pioneers are users who carry out mining activities in the PI network. Users in this category confirm that they are humans and not robots by clicking a button in the PI network app every 24 hours to carry out mining activities. Currently, the total number of pioneers in the network is around 35 million, according to reports that were created by the project itself.

While PI Network claims to carry out mining operations, the fact that there are no actual mining activities is. Like that? In crypto mining, transactions are generally processed and verified by solving complex mathematical problems. As soon as the transactions are validated, they are added to a distributed main register that is built on the blockchain. Miners are then rewarded with newly shaped digital assets for their contributions to the network.

The PI network currently has no functioning blockchain network. This means that there are no transactions on the platform, so Miner is not used in the protocol.

In their endeavor to release a blockchain network (Mainnet), the developers of the project announced the start of a closed maize at the end of December 2021. This network layer is designed for testing and collecting data before the future start of your maize. According to the developers, the PI Network Mainnet is released when the open Mainset is finished. The Open Mainet currently has no start date.

participants (secure)

After three days of active mining, Pioneers qualify as contriButors. Participants are pioneers that belong to a security area that consists of three to five users. To be a network contribution entitles you to a higher Pi Coin reward.

Security Circle is a group of three to five users in the PI network who trust each other.

It is noteworthy that a user can be added to several security circles.

ambassador (dealer)

users become ambassadors (distributors) if they invite new people to the PI network via their recommendation code. Ambassador receive an increase of 25% to your income for every user you invite you to join the network. This means that the higher the number of invited persons, the higher the earnings for the ambassador.

Unlike in the Contributor category, in which users can be added to several security circles, an invited can only join an ambassador.

knot (validators)

pioneers can become validators in the network by performing a PI software decorative note on a desktop or personnel computer. By operating a node, validators are rewarded with an additional thrust in their PI mining process.

The network currently has more than 10,000 active testnet nodes. The makers of the project claim that the nodes will take part in securing the PI blockchain as soon as the Mainnet Open Network goes live.

Pi Coin controversial notations: Where can you act with PI?

From January 18, 2023, there is no fixed date on which the Pi Coin is listed for trading. Since its start in 2019, the project has not value the cryptocurrency.

The Pi Network roadmap comprises three phases. The team has completed the first two phases: design of the project, distribution, Trust Graph Bootstrap and Testet.

According to the white paper, the PI blockchain is released when phase 3 of the Minnette goes live.

In December 2022, several crypto bonds, including Huobi, Bitmart and XT.com, listed a synthetic version of the PI on coin with the retail couple PI/USDT. However, it is worth noting that the digital asset coin marked with Pi is simply I-Aow-you (IOU) token with which users can speculate about Pi's price movement. This means that PI owners cannot deposit or sell their accumulated tokens on these stock exchanges.

In frenzy, the project developers announced that they broke out around the supposed start of the long -awaited Pi Coingaben that they do not support PI's listing through an exchange. The team added that users should "not deal with these stock exchanges or third-party providers, since their actions are not connected to the PI network".

Is Pi Coin a fraud?

Since Pi Network has gained a trip, experts have expressed concerns about legitimacy, security and the project potential of the project. However, it is difficult to describe the PI network as a real fraud, since the project does not require that users pay for access to the services of the platform.

Nevertheless, it should be noted that the users could be robbed of their time because the activities they carry out on the platform could not make a profit in the long run.

Conclusion

While the project has attracted many users worldwide, some experts have questioned the legitimacy of the platform and whether it is a snowball system or not. The recent list of a synthetic version of the Pi Coin on some popular exchanges has also made the project controversial because PI developers have warned the users to act on such platforms.

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