The Pi Network app has surpassed the milestone of 10 million users who completed the Know Your Customer (KYC) process, as announced on April 16.
The Pi team’s commitment to launching a mainnet and making tokens tradable hinges on reaching specific milestones, including 15 million users passing KYC. With 10 million verified accounts already, this target will be met once an additional five million users complete verification.
Despite this accomplishment, AIMultiple, a business analytics platform, contends that Pi may offer “no value to users” due to the inability to exchange Pi coins for fiat currency on exchanges. Launched in 2019 as a centralized app, Pi Network allows users to earn Pi tokens by simply tapping a button within the app each day. Presently, Pi cannot be transferred to other users via a wallet.
According to the announcement, 10 million users, known as “Pioneers,” have undergone identity verification using the app’s native solution, Pi KYC. This solution employs a unique blend of machine automation and crowdsourced, hyperlocal human verification for secure, accurate, and efficient KYC processes.
Nicolas Kokkalis, Pi’s co-founder and head of technology, asserts that this achievement demonstrates the industry’s ability to thrive without relying on fiat services. He also suggests that the new KYC system will cater to the identity verification needs of other Web3 services involving asset ownership.
In December 2023, the team outlined plans to launch an “Open Network” or mainnet in 2024, contingent upon meeting specific criteria. These criteria include developing 100 Pi apps, in addition to the 15 million users passing KYC, and completing all necessary technological, product, business, and legal preparations for the network launch. The team has not specified a launch date for the mainnet.
AIMultiple analyst Cem Dilmegani opines that Pi Network is unlikely to benefit users significantly, likening its operation to direct selling or affiliate marketing systems. Dilmegani suggests that founders primarily benefit from the app’s structure, utilizing an affiliate marketing model to drive app traffic and sell advertising. He expresses doubt regarding the potential launch of a blockchain mainnet, arguing that it would devalue the token and diminish user engagement.
In response to queries from Cointelegraph, a Pi representative acknowledges the unconventional approach taken to blockchain development, including the implementation of an intermediate Enclosed Network period before launching an open network. This approach aims to facilitate utility development and KYC processing for millions of community members, fostering a robust network for the community’s benefit.
The representative highlights several accomplishments since Pi’s inception, including the development of Pi mining and browser mobile apps, node applications, testnet and mainnet blockchains, wallets, developer platforms, and a novel KYC solution. Despite delays in launching an open network, the representative emphasizes the importance of patience and thorough preparation for a successful network launch.
According to a March 3, 2021 report from Vietnamese media outlet vnExpress, Pi Network ranks as the 22nd most downloaded iOS app in Vietnam. In May 2021, a Vietnamese news outlet reported an inadvertent leak of users’ identity card images to a hacker. However, a Pi Network spokesperson clarifies that KYC processes are handled by a third party, with no data stored on Pi servers, and no evidence of a data breach.
Vietnam’s government has cautioned about the risks of crypto trading as Pi gains popularity.
Token remains non-tradeable despite Pi Network's 10 million KYC-verified user milestone.