How does the launch of Pi Network mainnet affect Pi Coin price and value?

Introduction

Six years ago, three Stanford University graduates, Nicolas Kokkalis, Chengdiao Fan and Vince McPhillip, jointly created a project that only required a mobile phone to click a button once a day to mine. The project adheres to the concept that “anyone should be able to mine cryptocurrency through mobile applications”, so it is called the “civilian blockchain”. However, due to the continuous delay of the mainnet launch for 6 years and the official number of users that differed greatly from the actual data, the project has long been facing various criticisms and negative comments.

With Pi Network announcing that the Open Network will be officially launched at 16:00 Beijing time on February 20, 2025, will the price of Pi coin usher in an explosive leap?

What is Pi Network?

Pi Network is a cryptocurrency project launched on March 14, 2019 (Pi Day), aiming to allow ordinary users to participate in mining through their mobile phones. The project adopts a consensus mechanism based on trust relationships, and mining can be performed through mobile applications without expensive mining equipment.

Pi Network operates based on the Stellar Consensus Protocol (SCP), a low-energy consensus algorithm suitable for mobile devices. In Pi Network, the mining ability of users depends on the growth of its eco. Users verify each other’s identities by establishing a circle of trust, forming a global trust map, thereby achieving transaction verification and network security without a lot of computing power.

In terms of network operation, Pi Network uses four main roles to maintain:

Pioneer: Pioneer mines by daily check-in

Contributor: Contributors establish a security circle to enhance the credibility of the network

Ambassador: Ambassadors invite new users to expand the scale of the network

Node Operator: Node Operator runs verification software on the computer

How to participate in the mining process of Pi tokens?

It is very simple to start mining Pi Network. Just download the Pi Network mobile app and complete the following steps:

Step 1: Register an account. Use your mobile phone number or Facebook account to register.

Step 2: Verify your identity and complete the KYC process to ensure that each person can only have one account.

Step 3: Sign in daily. Click the “Mining” button in the app to sign in every 24 hours.

Step 4: Establish a security circle and invite 3-5 trusted contacts to join the network to increase mining income.

Step 5: Upgrade your role. Improve your role through continuous contribution and get more rewards.

It is worth noting that at present (February 12), Pi Network is in the transition stage to an open network. Even if users mine Pi coins, they cannot trade or transfer them out. Users who currently hold Pi coins can go to Pi Network to view the official announcement and complete KYC according to the announcement instructions so that they will not lose Pi coins after the mainnet is launched.

The value of Pi Network drives the price of Pi coin

The value of Pi Network is mainly reflected in the following aspects:

First, Pi Network adopts an innovative mobile mining mechanism, which greatly reduces the threshold for ordinary users to participate in cryptocurrency mining. Users can easily mine through mobile phone apps, without professional equipment and without consuming a lot of electricity. This convenient mining method allows Pi Network to attract a large number of users and expand the scale of the eco. Secondly, Pi Network has established a consensus mechanism based on social trust. Users need to increase mining income by inviting and verifying other trusted members. This mechanism helps to build a more secure and reliable network. According to official data, as of November 2024, Pi Network has 35 million active users.

Pi Network adopts a phased development strategy, gradually improving its technology and ecology through test networks, closed main networks and other links. Although this steady development path is long, it is undeniable that it also helps to enhance the confidence of users and investors in the future development of Pi Network.

In addition, Pi Network is actively building a diversified application ecology. In addition to basic payment and transfer functions, Pi Network also plans to develop more application scenarios such as decentralized applications (DApps) and smart contracts. This will provide Pi coins with a wider range of use value.

What impact will the launch of Pi Network mainnet have on the price of Pi coins?

The launch of the mainnet means that Pi coins will officially enter the circulation stage, and users can buy and sell Pi coins on exchanges. This will allow Pi to form a real market price, rather than an expected valuation. According to Coingecko data, as of February 12, the price of Pi was $81.80, up 66.9% in the past 24 hours. According to some analysts’ predictions, the price of Pi in 2025 may be around $74.4.

At the same time, after the mainnet is launched, a large number of pre-mined Pi coins will enter the market, which may lead to a sharp increase in supply in the short term. This may put some pressure on the price of Pi. However, if Pi Network can stabilize the operation of the mainnet, ensure zero failures, attract enough users and millions of user DApps, then the increase in demand can completely offset this supply pressure.

In addition, the degree of decentralization of Pi Network nodes is also an important consideration. If the top 10 nodes control more than 50% of the computing power, this may violate the original intention of Pi Network’s “civilian blockchain”, leading to user loss and investor confidence decline, and attracting a lot of negative comments, which will eventually lead to a drop in the price of Pi.

However, it should be noted that the cryptocurrency market is highly volatile, and the price trend of Pi Coin may be affected by many factors. Investors should carefully assess risks and not blindly chase high prices.

Summary

Pi Network, with its innovative mobile mining model and low-threshold participation mechanism, has opened the door to the world of cryptocurrency for ordinary users. Through a unique circle of trust mechanism and multi-role , it not only reduces energy consumption, but also builds a huge user base. However, the true value of Pi Network remains to be tested by the market. The supply and demand balance and technical stability after the mainnet is launched will be the key factors that determine its future direction. We should pay close attention to the development of Pi Network, rationally uate its long-term value, and do a good job of risk management.

Risk warning: The cryptocurrency market is highly volatile, and Pi Coin may face uncertainties such as changes in regulatory policies and technical loopholes. Investors should be cautious.