Pi Network Coin Price Forecast 2022 – 2025: Is It a Ponzi Scheme?

08/02/2022By: L, Laura

Estimates for Pi coin price forecast range from $1 to hundreds of dollars – its hard to determine the value of PI Network coin as it remains in pre-launch mode.

 

There is still no indication when or even if the 33 million so-called “Pioneers” mined on Pi Network (PI) will benefit from their coins. As of August 2, 2022, there are still no coins transactions. With no transactions and no fiat rewards, it is difficult to determine the value of PI coin.

 

It is important to distinguish Pi Network coin from the Pi Network DeFi token, which runs on the Binance (BNB) blockchain and can be traded on the PancakeSwap (CAKE) decentralized exchange (DEX).

 

So what is Pi Network and how does it work? Have you heard about the new cryptocurrency and wondered about the value of Pi coin as a potential investment?

 

This article outlines what the Pi Network aims to achieve and how Pi price expectations have appeared before individual coin is traded.

 

A Brief Glance at Pi Network

Pi Network is a digital currency project that aims to keep cryptocurrency mining accessible, as the centralization of first-generation currencies such as Bitcoin (BTC) has made them inaccessible to many everyday users. Developed by a team of Stanford graduates, the Pi Network enables users to use their desktop and mobile apps to mine Pi cryptocurrency coins and verify transactions on distributed records.

 

Unlike nodes on networks such as Bitcoin that use the Proof of Work (PoW) protocol, Pi nodes use an algorithm based on the Stellar Consensus Protocol (SCP). Pi nodes verify transactions on the distributed ledger and reach consensus on the order in which new transactions are recorded in the ledger.

 

Under SCP, PI nodes form security circles or groups, of three to five trusted people known to each network users. The security circles create a global network of trust that prevents fraudulent transactions, as transactions can only be verified on the shared ledger if the trusted nodes approve them.

 

The PI mining application acts as a cryptocurrency wallet, linked to the user’s cell phone number or Facebook account. Like other public blockchains, the Pi blockchain will allow external wallets to hold Pi coins and submit transactions directly to the blockchain. However, unlike other blockchains, its developers have not yet released its source code.

 

With a branding campaign based on the mathematical constant π, Phase 1 of the project launches on Pi Day, March 14, 2019, offering a free PI mining application. By June 2019, the network had over 100,000 active users. A year later, when Phase 2 was launched, there were more than 3.5 million users.

 

The app starts advertising in May 2020 to fund the project.

 

On March 15, 2022, Pi Network announced that its user base had climbed to 33 million, more than double the 14 million in March 2021.

 

Like other cryptocurrencies such as Bitcoin, Pi aims to “halve” periodically to protect its scarcity. Halving means that the number of coins miners receive to process new transactions is reduced by half. It usually happens when a certain milestone is reached.

 

When PI reaches 100,000 users, its mining rate halves from 1.6 π per hour to 0.8 π per hour; when it reaches 1 million, it halves again to 0.4 π per hour; and when it reaches 10 million users, it halves again to 0.2 π. It will continue to halve, reaching zero when Pi reaches 1 billion users.

 

In November 2021, the development team began releasing technical and product updates. These included its pilot Know Your Customer (KYC) application and Block Explorer.

 

After testing with community moderators, the KYC App Pilot was deployed “on a limited basis” to initiate the process of validating Pioneers and to improve the usability of the application and machine automation. Pi Block Explorer was also deployed to help Pioneers view transaction history and explore transaction data such as senders, receivers and amounts.

 

The Pi Wallet has also been updated to enable developers to create push notifications to alert Pioneers when they receive payments on the blockchain, and to fix bugs for Android users who cannot see their wallet passwords.

 

Pi Network launched an “Enclosed Mainnet” on December 28, 2021, to continue testing before its full launch. It also introduced a new mining mechanism and “infrastructure to provide Pioneers a simulation of the upcoming mining formula”.

 

The KYC app was initially launched to thousands of pilot participants for testing purposes, with 100 Pioneers allowed per country or region.

 

According to the project’s blog:

“The Enclosed Network period means that the Mainnet is live but with a firewall that prevents any unwanted external connectivity. Pioneers will be able to take time to KYC and migrate their Pi to the live Mainnet blockchain. Any balance migrated to the Mainnet can be used, by the choice of the Pioneer, to purchase goods and services in Pi apps, transfer to other Pioneers, or get locked up for a duration of time for a higher mining rate.”

 

On Pi Day (March 14, 2022), the development team announced two additional updates: the introduction of a massive KYC solution, and a new Pi mining mechanism that allows for more diverse mining rewards. These actions may increase the value for advertisers.

 

The developers added that they were rolling out KYC “on a large scale” to eligible users on 16 March.

 

Pi Network claimed to have 35 million engaged Pioneers on 19 May 2022.

 

Pi Network Coin Is Still in Pre-Launch

If you want to know how to buy PI Network coin for your portfolio, you can’t. Users who mine the PI cryptocurrency will only be able to withdraw or exchange their coins when the mainnet blockchain is fully open. PI cannot be transferred during the testing stage.

According to the project’s website, this is to prevent fake accounts from accumulating coins. The wallet balance is expected to be cashed out when PI shifts from development mode to a fully live network.

 

Therefore, the coin is not yet available for trading on any cryptocurrency exchange or trading platform.

 

Whats the Prospect of the PI Coin? Is It a Ponzi Scheme?

The debate continues as to whether Pi Network is a well-intentioned initiative or a scam. If it is a scam, it is not a Ponzi scheme in the traditional sense because users are not investing their money – they are investing their time on their phones.

 

The organization has been criticized for allegedly using its community to reach those 33 million users through the sale of ads, which it calls pioneers. The figure, from the Pi Network website, has not been updated since March 14.

 

However, early adopters are adding to their holdings of the Pi cryptocurrency, and prices are expected to rise sharply when the network goes live. While the token’s mining rate has been cut in half, users can increase their mining rate by connecting with other active miners. New users can only join Pi Network if they have a referral code from another user.

 

The project’s developers claim that these personal networks enhance the Pi Network’s security and encourage users to bring in friends and family – raising suspicions that it may be a multi-level marketing (MLM) or pyramid scheme. However, it is worth noting that users can only earn coins from their own direct networks, not from their connected networks, as in MLM schemes.

 

Pi Network has always maintained that it does not conduct initial coin offering (ICO) or crowdfunding sales, and coins that can be mined on the enclosed mainnet currently remain in the ecosystem.

 

On March 12, 202, the developers said that the Enclosed Network period would give Pioneers time to pass KYC validation, tweak the mainnet and add more applications. They did not say when the network would be open – only that “the Enclosed Network period is in line with Pi’s vision of a utility-based ecosystem and its iterative philosophy”.

 

While the price of PI has yet to be determined, some cryptocurrency watchers have already started making predictions about the price of PI crypto.

 

Let’s take a look at what the PI price might be when it starts trading, based on information from cryptocurrency prediction and monitoring websites.

 

Pi Network Coin Price Forecast for 2022-2025

Cryptocurrency data provider CoinMarketCap previously listed the coin’s value as $0.007077. As of August 2, 2022, the site lists the coin as “untracked” with no price attached.

 

The site also provides the following disclaimer when attempting to view the value of the Pi coin:

 

“Pi Network has faced its fair share of controversy recently. Please do your own research before investing.”

 

Algorithm-based prediction sites WalletInvestor and DigitalCoinPrice have both previously listed an estimated price of $0.007077 for Pi coin. Last year, DigitalCoinPrice made a forecast for Pi Network’s 2022 price, with the coin trading at an average of $0.0127 for the year.

 

The site’s price forecast for Pi Network in 2025 indicates a potential price of $0.0212, suggesting a potential increase in 2023 and 2024. It then predicts that the coin could be priced at $0.0319 in 2028. However, neither websites currently gives a Pi price forecast, although both have listings for Pi Network DeFi tokens.

 

Indeed, there are currently no algorithm-based prediction sites that offer Pi cryptocurrency value forecasts.

 

Therefore, Pi Network coin price predictions for 2030 are highly speculative, and the value of Pi coin in 2030 may depend on when the cryptocurrency goes live for trading and how it performs after launch. Estimates from some users on social media range from $1 to hundreds of dollars.

 

It is important to remember that the cryptocurrency market is still very volatile, making it difficult to accurately predict the price of the coin within a few hours and even more difficult to give long-term estimates, such as the value of the PI crypto in 2025. As a result, analysts can and do get their predictions wrong.

 

We recommend that you always conduct your own research and take into account the latest market updates, trends, technical and fundamental analysis and expert views before you make any investment decisions. And don’t ever invest more than what you can afford to lose.

 

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