Is the Pi network another upcoming scam? How do we know it?
Pi Network is a cryptocurrency that allows users to mine Pi Coin on their mobile and desktop computers. On the other hand, Pi Network has recently been the subject of some controversy, with rumors spreading that the product is a scam.
This article will discuss the legitimacy of the Pi network and how to withdraw the Pi coin.
What is Pi Network?
Pi Network promises to be the first and only digital money mining with your smartphone. Cryptocurrency mining is a very energy-intensive activity requiring a large amount of computing power to solve complicated mathematical riddles.
Pi Network instead employs complicated computer software to authenticate transactions through a sequence of votes and data transfers. First, their website gives little information about the currency and its function, with vague, bland words strewn around.
The smartphone application has also been criticized. The app has 4.5 ratings and over 250k reviews. However, many of them are suspicious and appear to be created by bots replicating a script. Furthermore, referral invites are necessary to access and sign-up to Pi Network. Referral links are extensively spammed throughout the review area.
Furthermore, any Pi coin that is presently mined cannot be withdrawn until Phase 3 of their main net is published, with an uncertain launch date. This methodology is quite similar to an MLM or pyramid scam. Both are infamous for being fraudulent operations, so proceed with care and due diligence while dealing with Pi Network.
Is the Pi network a scam?
The Pi network is now in its beginnings, or beta stage, as the pioneers mine the token (Pi Coin) on their mobile phones via a mobile app. They just released a non-custodial wallet as well, which they provided us with 100 test pi coins to try out. By the end of 2021, the core team intends to deploy the mainnet and the coin on a public exchange, at which point the coins will have some fiat currency value.
What makes this currency unusual is the way the network is advertised, in which one must be asked to join the network. Then as they add more individuals to the network, the mining speed improves.
Except there is no money involved, it sounds just like a multilevel marketing fraud. You must download and execute an application. During mining your Pi coin, it consumes some battery footprint, consumes minimal data, and does not request storage, location, phone, or messaging permissions.
It asks for permission to invite people from contacts, which may be declined without compromising the app’s functionality. For mining to occur, the user must register and login once per 24 hours, possibly watch one or two commercials, and that’s it.
This smells like a fraud, but some of the users say that what if the core members aren’t fooling us after all? There’s also the issue of the Pi Network’s lack of conviction compared to other cryptocurrency platforms. They have not yet made the network’s source code available for inspection by its user community. Furthermore, users on the Pi Network do not have access to their private keys, so the Pi coins they earn might vanish at any time in the future for all they know.
Pi network in 2022
A Pi Network price forecast for 2022 will be easier to create if the main net is ever launched and users receive the bitcoin they have been mining. We’ll have to wait to see the whole Pi coin network until then. This is supposed to happen when Phase 3 is released.
Crypto initiatives have previously outperformed expectations, but it is also a market characterized by rug pulls, scams, and pyramid schemes, as seen by the bankruptcy of Onecoin. According to some estimates, up to $20 billion may have been taken by the time Onecoin went bankrupt, and dozens of individuals were punished as a result. So, similar to how Bitcoin had no value at first, the Pi crypto has none currently, but it may have enormous worth soon.
While the Pi Network is still in its early stages, it is apparent that it is expanding rapidly, and it is a project to keep an eye on. After all, the Pi Network managed to build a community of about 18 million people within a year of its introduction, which is a truly remarkable achievement. And, because the Pi Network software is free and straightforward to use, it truly doesn’t cost you anything to board the train and mine the Pi cryptocurrency. Their marketing stresses the academic qualifications of their users. Similarly, blockchain fraud without blockchain infrastructure.
How to withdraw a Pi coin?
Until now, you cannot withdraw your Pi coins into fiat currency. As the business model works differently, some phases will upscale your rank, but still, you cannot withdraw your coins. Let’s take a look at how the Pi network works when it comes to withdrawing funds; Some Pioneers are now being authorized (KYC) Know Your Customer by Pi Network’s developers.
These early adopters who pass KYC will transfer Pi to DApp developers to gain access to features inside the DApps that will be available on the Pi Apps Platform through the Pi Network app. Currently, 100,000 Pioneers will be provided the chance to KYC for this service over several months. They will, however, be unable to transfer Pi from their Pi account to the Pi account of another Pioneer. They do not have IAT because they do not have IAT (In-App Transfer).
The Pi Network’s engineers will not allow this unique function until we are nearing the completion of Phase 3. Mainnet is the name given to Phase 3. It is the last stage of the Pi Network. In Phase 3, you will be able to transfer Pi from the Pi Network app to crypto exchanges and digital wallet accounts that are not part of the Pi Network app. Phase 3 is still not announced, and Pi owners have no idea when to be notified. So, it is better to do your research before investing in Pi or any other coin.