Pi Network Surpasses 10 Million Verified Users Amid Skepticism and Mainnet Launch Plans
Summary:
Pi Network's mobile app has reached over 10 million users who have completed the Know Your Customer (KYC) verification process. Aiming for a total of 15 million verified users, the Pi team has assured the launch of a mainnet and tradability of tokens once this milestone is achieved. Despite this success, business analytics platform AIMultiple expressed doubt on the value offered by Pi Network as it currently lacks the feature to exchange Pi coins for fiat currency on any trading platforms. The team plans to launch an 'Open Network' or mainnet by 2024, assuming all conditions are met. Meanwhile, critics suggest that Pi may not benefit users and primarily operates like an affiliate marketing system.
Pi Network's mobile application, as of an April 16 announcement, now boasts over 10 million users who have successfully validated their identities through a Know Your Customer (KYC) verification process. The team behind Pi Network has assured that the launch of a mainnet and the tradability of its tokens will be achieved when the platform hits several predetermined milestones, including having 15 million users pass the KYC verification. Currently with 10 million verified users, achieving the goal requires an additional KYC completion by 5 million users. However, some skepticism surrounds this success, with AIMultiple, a business analytics platform, stating that Pi Network may offer "no value to users" as it doesn't currently offer an option to exchange Pi coins for fiat currency on any trading platforms.
Pi Network, launched in 2019, functions as a centralized application where users are able to produce Pi tokens by activating a button within the app daily. As of now, Pi does not have the feature to allow for transfers of Pi tokens to other users via a wallet. These users, labeled as "Pioneers," have complied with identity verification through Pi Network's unique in-app identity verification solution, Pi KYC, as reported in the announcement. According to the claim, this solution combines machine automation and localized human verification, allowing for secure, accurate, and efficient KYC practices.
Dr. Nicolas Kokkalis, the co-founder and the head of technology of Pi, expressed that this milestone suggests that "the industry doesn’t need to depend on fiat services to succeed," and highlighted how the robust KYC system will support identity verification needs for other Web3 services involving asset ownership. The team revealed plans in December to introduce a mainnet, labeled as 'Open Network,' by 2024, given certain conditions are met: at least 100 Pi apps must have been developed, and 15 million users must have passed the KYC verification. This also requires all technology, product, business, and legal aspects to be ready for the network launch, and the external environment must not present any obstacles threatening the network's success.
Despite these plans, AIMultiple analyst Cem Dilmegani has voiced his concerns about Pi Network's potential lack of benefits for its users besides the founders. He views Pi Network akin to a direct selling or affiliate marketing system, drawing new users through promises of future rewards. Dilmegani asserts that this system is instrumental in increasing app traffic, which subsequently supports ad sales benefiting the app's developer. He acknowledges the possibility of the Pi team launching a blockchain mainnet but doubts its likelihood as it could result in a precipitous drop in token value as users sell into the market, potentially affecting app usage and thus advertiser value.
The Pi team responded to queries from Cointelegraph regarding these issues. They noted their unique approach to blockchain development, introducing an "Enclosed Network period of mainnet" instead of launching an open network immediately to facilitate platform utility creation, and KYC verification for millions of community members. This approach aids in building a robust network for the community's benefit ahead of the Open Network launch. According to them, the non-immediate launch of an open network is justified, citing that "anything worthwhile takes time and patience" which are crucial contributors to a successful Open Network launch.
Reports from Vietnamese media outlet, vnExpress, mentioned that Pi Network ranked 22nd in the most downloaded iOS apps in Vietnam as of March 3, 2021. Nevertheless, in May 2021, reports arose about the alleged leaks of user identity card images by Pi to a hacker. Pi Network responded saying that KYC is managed through a third-party, and that no such data was stored on their servers, dismissing any existence of a data leak.
Published At
4/18/2024 12:28:24 AM
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