Challenges as Bybit, others refuse to list Pi coin despite potential open network launch
Pi Network is preparing to transition from its Enclosed Network phase to an Open Network phase, with the launch date set for February 20, 2025.
This will allow the blockchain to connect with external networks, enabling users, referred to as Pioneers, to transact beyond the confines of the Pi ecosystem.
The transition follows a period of delays and aims to enhance the utility and accessibility of the platform.
Key features of the open network
External Transactions: The Open Network will facilitate transactions outside the Pi ecosystem, which is expected to broaden real-world use cases for Pi coins.
Node Operation: Once the network opens, anyone can operate a node on the mainnet blockchain. However, priority will be given to experienced users who have demonstrated reliability and consistent contributions during the testnet phase.
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User Verification: The blockchain supports identity verification for individuals and businesses, which is a feature not commonly found in other Layer-1 networks. This capability allows for seamless interactions between verified users and third-party applications.
Mining Accessibility: Users can mine PI coins for free using mobile devices, making cryptocurrency accessible to millions globally.
Challenges and controversies
Despite its ambitious plans, Pi Network faces skepticism within the crypto community. Critics argue that its model resembles multi-level marketing schemes rather than a legitimate blockchain project. This has led major exchanges to hesitate in listing its token. For instance:
Bybit’s CEO has publicly dismissed calls for listing Pi tokens due to concerns stemming from his experiences in forex trading.
Some exchanges have distanced themselves from promoting Pi Network due to ongoing controversies surrounding its operational model.
However, OKX has announced support for the Pi token, allowing deposits starting February 12, with spot trading commencing on February 20 and withdrawals available from February 21.
Legal concerns
The upcoming transition has also raised legal concerns regarding Pi Network’s structure. Experts warn that its referral-based mining system may violate anti-pyramid scheme laws in certain jurisdictions. While it boasts over 19 million verified users, there are warnings about potential legal repercussions for involvement with the platform.
So, while Pi Network’s transition to an Open Network presents opportunities for broader engagement and utility within cryptocurrency markets, it also brings significant challenges related to legitimacy and regulatory scrutiny.
