The Pi Coin cryptocurrency and its Pi Network blockchain recently made headlines as the number of Twitter followers hit 2 million. This is all the more remarkable as Pi Coin is not yet listed on any crypto exchange.
How come a cryptocurrency became so popular without having a use case or being traded by anyone? The developers promise that Pi Coin will become a real alternative to Bitcoin. But crypto analysts doubt the Pi network could ever be useful.
What is the Pi Network?
Pi Network is a blockchain platform designed to tackle some of the biggest challenges in the crypto industry. For example, the growth of Bitcoin has made mining extremely difficult and expensive. To mine BTC today, users need hardware that costs thousands of dollars.
In contrast, you can mine the Pi Coin itself on cellphones. Users only need to download the appropriate encryption application. After that, you can start mining immediately. An invitation is currently required to use the app.
Pi Network uses the Stellar Consensus protocol and the Federated Byzantine Agreement (FBA). Both of these mechanisms require the exchange of network messages. The developers promise that it shouldn’t pollute the environment as much as Bitcoin mining does.
Pi Coin is also said to solve the problem of fees, which are relatively high for common cryptocurrencies like BTC and LTC. Users will be able to send money for a small amount.
Is Pi Coin a scam?
Pi Network has quietly become one of the most popular cryptocurrencies in the industry, at least according to the number of followers on Twitter. More than 2 million people follow Pi Network’s Twitter account. For comparison, Cardano has 1 million followers, while Shiba Inu’s Twitter account has around 794,000 followers.
In addition, Pi Network’s Android application has been downloaded over 50 million copies, the current average rating is 4.7 stars, which is relatively high. The iOS app is also used by millions of users.
Yet, there is also controversy surrounding Pi Network. For one thing, this cryptocurrency is not yet listed on any major crypto exchange, despite having been around since 2018. Four years is a long time and it’s unclear why blockchain is taking so long.
So, while Pi Network users can’t do anything with their mined coins, developers are apparently able to earn millions by running ads on their app.
If Pi Coin is listed on a crypto exchange, the price will most likely drop quickly as most holders will sell their coins immediately. We have seen it with Sweatcoin, the popular coin for earning using a crypto app as well. The price of the SWEAT token remains near its all-time low as interest in the project has waned.
In my opinion, Pi Coin is nothing more than a new Ponzi scheme. At least no one seems to have earned anything from this cryptocurrency since 2018.