Pi Network Hits 10M KYC Milestone, Yet Tokenomics and Real Value Remain Questionable

Pi Network has just announced it crossed the 10 million user verification threshold through its proprietary KYC (pi://kyc) system, marking a significant milestone on the path toward its long-promised mainnet launch. However, critics argue this achievement masks fundamental issues about whether the platform will ever deliver tangible benefits to its user base.

The Achievement: Numbers Don’t Tell the Whole Story

As of April 16, the platform’s centralized mobile app now boasts 10 million verified “Pioneers” who have completed identity verification. According to the team’s announcement, this proprietary verification approach combines “machine automation and crowdsourced, hyperlocal human verification” to streamline the KYC process. Nicolas Kokkalis, co-founder and technology lead, framed this as proof that “the industry doesn’t need to depend on fiat services to succeed,” suggesting the solution could eventually be licensed to other Web3 platforms.

The company has outlined clear targets for the next phase: once 15 million users complete KYC—requiring just 5 million more verifications—and assuming 100 Pi-based applications are built, the team plans to launch the Open Network mainnet in 2024 (pending “favorable external environment” conditions).

The Skepticism: Critics Question Real-World Utility

Current price of PI token stands at $0.21 with a market capitalization of $1.72 billion across 8.36 billion circulating tokens. Despite these numbers, business analytics firm AIMultiple raised serious concerns about whether users will actually benefit. According to the firm’s analysis, Pi tokens cannot currently be exchanged for fiat currency on any exchange, severely limiting practical utility.

More critically, analyst Cem Dilmegani argues the platform operates primarily as an affiliate marketing system rather than a genuine blockchain project. Users generate Pi by pressing a button daily, with incentives tied to bringing new participants into the ecosystem. “Founders are already benefitting from the app through optional video advertising,” Dilmegani noted, suggesting the real monetization strategy targets advertisers rather than rewarding ordinary users.

The Concern: Will Mainnet Ever Happen?

Dilmegani suggested that launching an open mainnet could actually backfire. If trading were suddenly enabled, he argued, the token would likely suffer a sharp price decline as early miners and users rush to sell, making daily engagement less attractive to new participants and ultimately destroying the app’s value proposition to advertisers.

Pi Network, which launched in 2019, currently operates as a closed system where coins cannot be transferred between wallets or traded on exchanges. The project’s lengthy development timeline and delayed mainnet launch have fueled questions about whether these promises will materialize.

The Defense: Pi Team Pushes Back

When Cointelegraph reached out for comment, Pi’s representatives defended their “unconventional and novel approach,” stating they deliberately chose an “Enclosed Network period” before opening up to allow developers to build utilities and for KYC processing to scale. They pointed to achievements including the Pi Browser, Node application, Testnet, blockchain infrastructure, Wallet functionality, and developer platform.

“We believe anything worthwhile takes time and patience,” the representative responded, suggesting that careful execution now would ensure a “healthy launch” of the Open Network later. This incremental strategy contrasts sharply with the critics’ perception that delays indicate hesitation or fundamental flaws in the economic model.

The tension between Pi’s growing verified user base and lingering questions about token utility highlights a broader challenge facing alternative blockchain projects: scaling adoption is one thing; building a sustainable economy where tokens hold real value is quite another.