A storm is brewing in the world of cryptocurrency, and the Pi Network finds itself at the eye of it. Once a darling of the crypto community for its promise of easy, mobile-based mining, the network is now facing a harsh reality check. As of May 2025, the optimism that initially propelled Pi Network to more than 70 million users worldwide seems to have fizzled. The network finally opened its mainnet to external trading in February 2025, a move anticipated for years, yet it has done little to stem the tide of skepticism and disappointment.
The Rise and Fall of Pi’s Hype
Pi Network’s meteoric rise began in 2019 with a tantalizing proposition: mine cryptocurrency directly from your smartphone without the hefty electricity bills or expensive hardware that Bitcoin demands. It was a revolutionary idea, and people flocked to it—millions, in fact. But the initial glow dimmed as the network’s ambitious roadmap continually hit speed bumps.
When Pi’s mainnet launched external trading in February, the expectations were sky-high. For a brief moment, the price soared to nearly $3. But the bubble burst quickly. As early adopters cashed out and practical use cases failed to materialize, Pi’s value plummeted, now hovering around $0.58. “It was a classic case of too much hype and not enough substance,” notes crypto analyst Clara Jenkins. “The market’s response was harsh but not surprising.” This trend is not isolated, as highlighted in CoinGecko’s report on crypto token failures, where 1 in 4 tokens launched since 2021 have failed.
A Network Under Scrutiny
The crypto community has expressed growing skepticism towards Pi Network, not least because of its long delay in launching an open mainnet. Despite promises of decentralization, the Pi Core Team retains substantial control over the network, managing every active mainnet node and holding a significant portion of the token supply.
Transparency, or the lack thereof, has been another thorn in Pi’s side. With vague white papers and unclear tokenomics, users are left in the dark about the project’s operational mechanics. “For a project that champions decentralization, Pi’s operations feel anything but,” says blockchain expert Marcus Lee. Lack of major exchange listings further compounds the issue, with Pi only available on platforms like OKX and Bitget, where users report frequent issues with token accessibility. This situation mirrors recent events in the crypto space, such as Movement Labs’ suspension of Rushi Manche amid a token-dumping scandal, highlighting the industry’s ongoing challenges with transparency and trust.
The Pyramid Problem?
While Pi Network doesn’t fit the classic definition of a scam—having no initial coin offering or upfront investment—it has raised eyebrows due to its heavy reliance on a referral model. This structure, alongside aggressive ad monetization and mandatory Know Your Customer (KYC) verification, has sparked concerns reminiscent of multi-level marketing schemes.
Critics like Ben Zhou, CEO of Bybit, and Justin Bons, founder of Cyber Capital, have publicly questioned Pi’s legitimacy. Zhou points out, “When a project leans more on growing its user base than adding real value, skepticism is warranted.”
Can Pi Network Turn the Tide?
So, what lies ahead for Pi Network? The path to redemption is steep and fraught with challenges. Transparency must be the cornerstone of any future progress. Open-sourcing the code could go a long way in rebuilding trust within the community. Additionally, Pi needs to find real-world use cases. Without them, the token offers nothing more than speculative hope.
Broader exchange listings could improve liquidity and restore some market confidence, but major exchanges like Binance and Coinbase have so far held back, citing regulatory concerns and transparency issues. A shift toward genuine decentralization is also critical. As it stands, the centralized control contradicts the very ethos Pi Network claims to champion.
However, time is not on Pi’s side. Since its mainnet launch, user engagement has waned, and the price has tumbled. The network risks becoming a cautionary tale of unfulfilled promises in the crypto space.
In the ever-evolving landscape of cryptocurrency, only time will tell if Pi Network can reinvent itself or if it will fade into obscurity. One thing is clear: the stakes have never been higher. If Pi can’t pivot, it might just end up as a footnote in the annals of crypto history—a reminder of the gap between technological dreams and reality.
Source
This article is based on: Is Pi Network dead? What really went wrong behind the hype
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
