Pi Network — A Scam or future Bitcoin???

AP Networks

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4 min read

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May 15, 2021

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I would be sharing my honest review and all the research I have done so far.

“Till date no-one is benifited from pi network(pi coin)except the founders”.It could be justified from the following reasons:-

Users are currently putting value in the app without tangible (except maybe psychological) benefits:

The app does not provide any utility to its users beyond functionality like in-app messaging. Most users hold on to it with the hope that they will sometime convert their virtual coins to actual value

The app works like a direct selling or affiliate marketing system, promising future rewards to users for bringing in new users. Some users put in additional time and effort to attract new users, such as numerous users adding their codes as comments to this article. We find it similar to Multi Level Marketing since it includes direct selling and provides increased potential benefits to early users (i.e. earlier users mine at an increased rate), however affiliate or direct selling are possibly better analogies.

Users are putting value into the app. There are hundreds of posts online saying PI Network can not be a scam because users do not put any money it. Users’ time and data are valuable to those users and they are spending these on the app. For more, you can see our analysis of the app’s privacy policy, its data collections, permissions and the 3rd party software included in the app.

We find it unlikely for the app to create value in the future unlike its claims:

The app creates limited value. Users create no value except for providing their information to the mobile app, viewing ads or messaging other users. The value of these activities is unlikely to generate significant wealth for the large user base.

Some of its current practices are also used in scams:

Founders are already benefitting from the app. They launched optional video ads at launch to monetize the active user base. The app also has a KYC process of collecting passport information. Having a verified audience through a KYC process would increase advertising revenues. We are not against ad funded businesses, we are also such a business, we provide insights and our audience views ads on our pages. However, when businesses that are expected to launch additional features (e.g. launch coin on exchanges), start monetizing their audience, that can create a conflict of interest.

Their marketing emphasizes the academic credentials of their users. Very similarly, a blockchain scam without blockchain infrastructure, OneCoin, relied on the McKinsey experience of its founder in its marketing.

Will pi currency be valuable in near future?

It may have a value in future still the answer can’t be totally A Yes. But some of the evidences which give us a idea that it may have a value in near future:-

They have published a high level whitepaper outlining their ambitions without providing technical details on how their Pi Stack would work. One of their aims is to have others build apps on PI network to benefit from PI network users’ attention. This reminded us of the pay to surf models of the dot com boom where companies installed software on user devices and acted as middleman between users and advertisers without generating substantial benefit to either party.

They claim to have run a pilot in 2020 for people to exchange goods and services using Pi. Instead of running pilots, they could have listed their coin on an exchange as it has been done by companies like electroneum. Pi users claim that Pi team’s approach of forking the open source Stellar blockchain to build their implementation requires significant effort due to various reasons and that this is the reason for the delay. We will not know until we see the mainnet and the criteria for launching the mainnet remains vague in the whitepaper. Mainnet will be launched once the community feels that it is the time and sufficient testing has been completed.

According to their Linkedin page, they have 70 employees as of 2021. However, many of the people that list themselves as working there are app users with titles like “Cryptocurrency Trader”. We haven’t analyzed each profile but there seems to be a group of people working towards building something there. It could be the next version of the app or the blockchain network, that is hard to verify from outside the company. What we can see is

they have launched a test version of their blockhain

users claim that they have shared some of their code on github

Its founders were educated at and worked at Stanford. Though this is certainly a good thing, people rarely notice that Warren Buffet, Jeff Bezos, the writer of this article and numerous business founders were educated at reputable universities (e.g. Ivy League universities for these examples). This is because their companies rarely use these facts. Based on our observations, business success is far more important and a better predictor of successful enterprises than academic credentials. And successful companies tend to speak about their business success rather than their founders’ academic credentials.

They have had significant growth. They have ±250k reviews and a good rating on Google Play Store. However, models similar to MLM tend to generate fast growth

Well I advise you to download it as it is free and sign, up you can use my refferal –“aadi255”. minepi.com/aadi255.