Cryptocurrency from Pi Network

From time to time, we witness the launch of a new cryptocurrency, which is accompanied by hype, andPiNetworkIn 2019, this new company debuted with claims that it was a new"Bitcoin of the Year 2008"where users can mine cryptocurrencyPiright from their phones, without draining batteries or wasting power.Many users rushed into it, not even knowing what it was or why to use it, but rather with a single purpose: "Hurry up before it's too late" and "It's free".

In this article, we're going to take a completely open-minded look at what the Pi Network really means, the timeline of the Pi Network, the people behind the project, and whether or not it's really worth getting involved in this project.

The Pi Network is their biology. Pi Network claims to be the first digital currency that can be mined with a regular phone at no costUltimately, they aim to become the "main" platform where people canmake transactions using the Pi coin on the Pi Network.

They claim there is a team behind the projectPh.D. graduates from Stanford University with a wealth of valuable knowledge. They also show off their app, available for download on both GooglePlay and the AppStore, with 10+ million users to date. After downloading the app, you will need to link your Facebook number and account to your wallet. Every 24 hours, you can log into the app and get your earned Pi coins effortlessly.

You can also increase your earnings by going throughthe process of passing the KYC procedure. Pi Network app on Google Playstore Is Pi Network worth anything? As we explored and delved deeper into the Pi Network, we couldn't help but notice a lot of red flags that are usually not good indicators for any project that gets started.

In the next section, we're going to list each issue and explain why they might be potential indicators of flirting:

1- Privacy Issues: It all starts with what the user uploadsapp (wallet), and it needs to verify the phone number and link the accountFacebook.You will never encounter a similar process when using any other wallet (not to be confused with opening accounts on exchanges).They also have a KYC step that collects passport information, which is contrary todevelopments on their platform: why force people to go through KYC and provide important information if they haven't already?exchange Pi for USD or anything else?no regulatory body that would force companies to conduct KYC activities when the money transfer is not yet being made.No other cryptocurrency to date obliges users to do this, moreover, it contradictsthe most important reason for creating cryptocurrencies is privacy.Lots of resolutions on your phone (screenshots below).

2- Questionable Infrastructure – Does Pi Network Use Blockchain?In normal scenarios, companies publish their open-source code to prove validity, and that hasn't happened yet.Their White Paper is just a business plan, still in Draft 1 stage, dating back to the company's inception in March 2019.Everything is still a theory with no real code in place.The sandbox on their site is very sorry not mature for a company that started almost 3 years ago.There's no proof of work done, users just log in and clickIt seems that the Pi Network is just usingcrypto vocabulary such as mining, wallet, blockchain... to fit into the realm of cryptocurrencies.Another infrastructure issue has to do with how PIs are created.Let's move on to the next alarm bell – the dilemma of no energy loss.

3- The dilemma of "no energy leakage" There is a famous saying in chemistry that sounds"Nothing is lost, nothing is created, everything is transformed."If you want to mine cryptocurrencies, which is essentially the creation of new coins, something has to push that creation, unless the creation is meaningless and useless.In this case, we see that the only thing that pushes the creature (since no energy is expended) is the introduction of new people, which makesMining is pointless, but simply pressing a button every 24 hours, in an attempt to mimic the real mechanism of cryptocurrency mining.Why keep users coming back every day?others and log into the app on a daily basis are much more valuable than a passive user who has been downloading the app for a hundred yearsThe latter cannot be monetized as much as fresh information about active users.It also helps to create a sense of hype, which is also a red flag.

4- Newcomers and Third World OrientationMost of the users who share their referral links seem to be crypto newbies who don't understand how real mining works and what cryptocurrencies really are. They just heard from the media that bitcoin is profitable for early adopters and hope to become millionaires with the Pi. Also, here is a list of countries where the Pi Network is known: Bhutan, Nepal, Vietnam, Nigeria, Romania, Iran, Lebanon, Egypt, Iraq, Pakistan, Malaysia.

5- Transition to the status of “PhD founders”– Who created the Pi Network We are always calm when we know that a certain project is being handled by “professionals”. But what's happening with the Pi Network, – it's that people jump on board just because of the credentials of the founders. is that enough? Well, this sounds all too familiar. OneCoin, the previous cryptocurrency project, was also promoted due to the fact that the main person behind it was also a PhD candidate in business and economics, Dr. Ruja Ignatova. The company was later shut down for running a Ponzi scheme. Successful companies tend to talk about their business successes rather than shoehorning their founders' science into every pitch.

6- Positive feedback from newcomers.On both app stores, the app boasts multiple 5-star reviews that only say that the app “doesn't drain your battery”. We already said that this is bad news because it shows that the application is not doing anything. If you read positive articles, you will definitely receive a referral link. All positive reviews end the same way: “Well, you have nothing to lose, why not try… use my referral code”.

7- No advancements on the time horizonThe company launched in 2019 and to date there are no specific developments other than the following: A simple website. Simple application. Users referencing each other. In this case, the only real value of the company is its significant user base, which is definitely monetized by the creators.

It is not uncommon for MLM schemes to grow rapidly in number, andit's not bad, but it becomes more risky knowing that an already dubious project is using MLM for rapid growth. So what's to lose? Why not try? If you are not paying for a product, then you are the product. Nowadays, data is very important and can be sold for a lot of money.

Remember the old scandal between Facebook and CambridgeAnalytica, where certain applications were developed on the Facebook platform to obtain user information? So, this is a similar case where owners can significantly monetize their user base by having access to much more segregated information. It was also discussed that at the very beginning, users were shown video ads to help monetize their active user base: The founders are already benefiting from the app. They launched optional video advertising at launch to monetize their active user base. The app also has a KYC process – collection of passport data. Linking this data to mobile identifiers could be valuable information for AI founders.

Conclusion – Is Pi Network legal?Pi Network is far from being the next Bitcoin. When Bitcoin was first launched, its code was publicly available, demonstrating exactly how the blockchain does its job. Mining was a logical process and people never needed to recruit each other. The only positive thing about the Pi Network is that it boasts a large active user base, which certainly benefits the creators. When there are further updates, we will definitely publish another article and talk about the development of the market.