What happened?
The mobile mining project Pi Network recently announced that its “Open Mainnet” will officially launch on February 20, and shortly thereafter, the international exchange OKX announced that it will list Pi tokens for trading at the same time, sparking lively discussions among netizens.
Pi Network began in 2019, gaining attention with the highlight of “mobile mining.” However, due to its promotion model being overly reliant on users inviting others, coupled with years of delays in launching the mainnet and a lack of substantial application scenarios for Pi tokens, it has been labeled by many as a “worthless token.”
Pi tokens to be listed on OKX Exchange
In the cryptocurrency world, Pi Network has consistently attracted attention and controversy due to its “mobile mining model” and claims of millions of users. Recently, with the announcement of the upcoming mainnet launch and OKX’s announcement of Pi token trading, Pi Network has once again become a focal point of community discussions.
OKX announced that it will list Pi tokens on the exchange on the same day the mainnet goes live, which has generated significant discussion among netizens. As one of the world’s well-known cryptocurrency exchanges, the listing of Pi tokens on OKX will help enhance the visibility and liquidity of Pi tokens, and signifies mainstream recognition for Pi Network, increasing confidence in its future development.
Some supporters of Pi Network are excited about the mainnet launch and the listing on OKX, while many skeptics remain doubtful about Pi Network, referring to it as a “worthless token” or a “scam.” What exactly is Pi token?
Operation Model of Pi Network
Founded in 2019 by several PhDs from Stanford University, Pi Network aims to make it easier for the general public to participate in cryptocurrency mining. The primary difference between Pi Network and other cryptocurrencies like Bitcoin lies in its mining method.
Mining for cryptocurrencies such as Bitcoin often requires substantial electricity and computational power, as well as specialized mining equipment, making it difficult for the average person to participate. In contrast, Pi Network utilizes the “Pi Consensus Protocol” for its mining mechanism, allowing users to mine simply through a mobile app without the need for extensive electricity or computational resources.
The mining process in Pi Network is very straightforward; users only need to open the app once a day and click the lightning button to start mining. To prevent malicious users or bots from participating in mining, Pi Network has implemented a “Security Circle” mechanism, requiring users to invite trusted members to join their security circle to collectively maintain network security. Members of the security circle vouch for each other, forming a trust network that effectively prevents fake accounts and bots from participating in mining, thereby enhancing the security of Pi Network.
In addition, Pi Network places significant emphasis on user authenticity, thus introducing a KYC (Know Your Customer) verification mechanism that requires users to submit identification documents to verify their identity. This helps prevent multiple accounts by a single individual, ensuring that each Pi token is mined by a real user. KYC verification is one of the important prerequisites for the launch of Pi Network’s mainnet; only users who pass KYC verification can transfer their mined Pi tokens to the mainnet wallet.
Launch of Pi Network Mainnet
The launch of the Pi Network mainnet can be seen as an important milestone in its development, as it signifies that Pi tokens will officially enter a circulation phase.
Once the mainnet is launched, users will be able to use Pi tokens for transactions, payments, and other activities within the Pi Network ecosystem. The rollout of the mainnet will occur in several phases, starting with the “Enclosed Mainnet” and then gradually transitioning to the “Open Mainnet,” where Pi tokens can be traded in the public market.
During the Enclosed Mainnet phase, the trading and circulation of Pi tokens will be restricted, primarily for testing and refining the Pi Network ecosystem. However, the originally scheduled launch of the Open Mainnet in March or June 2022 has faced numerous delays, leading to significant dissatisfaction among users. According to an announcement from Pi Network yesterday (the 12th), the “Open Mainnet” will officially launch at 4 PM Taipei time on February 20.
Challenges and Controversies Facing Pi Network
Despite promoting mobile mining and claiming to have millions of users, and announcing the upcoming mainnet launch with OKX also announcing the listing, Pi Network continues to face skepticism and ridicule from many netizens, who refer to it as “garbage air token.”
The criticisms of Pi Network primarily stem from its lack of transparency and substantive value. The delays in launching the mainnet for several years, along with the details of its mining mechanism and consensus protocol remaining undisclosed, compounded by the persistent lack of practical application scenarios for Pi tokens, which cannot be traded on mainstream exchanges, leave many users questioning whether the tokens mined through their phones actually hold any value and make it difficult to assess their technical feasibility and security.
Moreover, its promotion model heavily reliant on user referrals has drawn comparisons to a “Ponzi scheme.” The large user base claimed by the official sources seems to contradict the actual number of active users indicated by blockchain data.
Pi Network also faces regulatory challenges. In 2022, Chinese state media warned investors to be cautious of the risks of Pi tokens “cutting investors off,” labeling it as a “worthless token.” Additionally, Vietnamese authorities have launched an investigation into Pi Network, suspecting it of fraud. Le Xuan Minh, deputy director of the Ministry of Public Security’s Cybersecurity and Crime Prevention Bureau in Vietnam, stated that the operational model of virtual currencies like Pi Network is “extremely complex and unregulated,” noting that “no other business activities can generate such high profits in an online environment.”
Due to these various factors, Pi tokens have been humorously referred to as “the longest-lasting multi-level marketing token,” and after OKX announced the listing of Pi tokens, the cryptocurrency community was once again shocked.
Cryptocurrency analyst Phyrex expressed on social media platform X, “This world is too surreal,” and tagged OKX CEO Xu Mingxing, stating, “If you have been kidnapped, please give me a sign.”
Additionally, since most of the users holding Pi tokens are older individuals from China, many netizens are concerned about the strong selling pressure that Pi tokens may face upon their launch, questioning whether these older individuals, holding significant amounts of capital, will be able to withstand the wave.
How to Withdraw Pi Tokens?
After Pi tokens are listed on exchanges, the most pressing concern for most netizens is “how to convert tokens into New Taiwan Dollars?”
Complete the 8 major tasks:
1. Open Pi Network and complete the tasks on the mainnet checklist.
2. Download the Pi Browser.
3. Create a Pi Wallet.
4. Confirm the Pi Wallet.
5. Choose the locking duration and quantity.
6. Confirm the security of the Pi Network account.
7. Migrate the mined Pi tokens to the mainnet.
8. Submit KYC information (only after passing KYC can Pi tokens be received or transferred).
After completing steps 1-8, users will be automatically added to the migration queue and can withdraw Pi tokens once they pass the official verification.
Withdraw Pi Tokens and Transfer to OKX
After confirming that all tasks have been completed, the personal balance will be displayed in the withdrawal balance, and users can select the withdrawal function and enter the amount of Pi tokens to withdraw.
Next, choose OKX as the withdrawal address.
Convert Pi Tokens to USDT
According to OKX’s announcement, Pi tokens will be listed on February 20, 2025, at 4 PM, at which point users can sell their Pi tokens for the stablecoin USDT.
Withdraw USDT to a TWD exchange
Once converted to USDT, users can use this fund for other cryptocurrency investments. However, if they want to completely exit and convert to New Taiwan Dollars, they will need to transfer the stablecoin to a TWD exchange account, select the USDT/TWD trading pair, and exchange the stablecoin back to New Taiwan Dollars.
This way, users can withdraw New Taiwan Dollars to their linked bank accounts. Additionally, withdrawing New Taiwan Dollars usually requires a few working days, so please be patient and do not rush.
References: tribune, ccn, e.vnexpress.