Is Pi a scam? Pi Network explained

What is Pi Network?

Pi Network is a decentralized blockchain project in the cryptocurrency space that you can access directly from your smartphone. Unlike traditional cryptocurrencies that require expensive hardware and plenty of energy, Pi coins can be mined by simply tapping a button in the app every 24 hours. The project focuses on accessibility and low energy use.

How does Pi Network work?

Pi Network lets you mine cryptocurrency right from your phone, without expensive hardware or a lot of energy. The project uses a modified Stellar Consensus Protocol, where users help validate transactions by building “security circles” of trusted members.

To start mining, you need an invitation from someone already on Pi. After completing KYC with an ID verification and a quick liveness check, you can register and tap a button in the app every 24 hours to earn Pi coins.

Is Pi Network safe to use?

Overall, the Pi Network system is safe to use. The platform itself won’t harm your phone or use excessive data, and while some dislike the KYC process, it helps to prevent fraud on the exchange and ensures each user has only one account. 

Is Pi Network a scam or legit?

Pi Network is not a scam. It is a legitimate project, but it is not a fully launched cryptocurrency yet. The app allows users to “mine” Pi coins, but these coins currently won’t have tradeable market value until the network officially launches on exchanges.

While the Pi Network itself is not a scam, many scams exist around it. Cybercriminals create fake websites, phishing emails, and social media accounts that impersonate Pi Network. These scams often promise free Pi tokens or pressure users into completing fake KYC processes, allowing cybercriminals to steal targets’ wallet keys, passphrases, or personal information.

Since the Pi app does not include internal messaging, you cannot be scammed directly within the platform. The real risk comes from outside sources, so it is important to use official Pi Network channels, avoid suspicious links, and never share sensitive data with strangers.

Common concerns of Pi Network being a scam

Even though Pi Network is generally considered safe, some users have raised concerns that certain elements make the project seem risky or potentially fraudulent:

• A referral system that rewards users with Pi tokens makes the business model resemble a pyramid scheme.
• The requirement for the KYC process raises privacy concerns.
• Lack of transparency, for example, the absence of a detailed white paper and control over the central Pi tokens supplied by the Pi Core Team, worries people about potential market manipulation and insider trading.
• Pi Network’s past performance shows a volatile price history, which could indicate poor future results.
• The Pi token has no intrinsic or real value since its worth is largely speculative.
• Trading bot scams can lure users onto fake platforms claiming to be Pi Network and steal personal data and funds.
• Some cryptocurrency mining apps claiming to be from Pi Network actually contain crypto malware.

Reasons why Pi Network is not a scam

Although some aspects of Pi Network raise concerns, several factors suggest it is legitimate:

• Dr. Nicolas Kokkalis and Dr. Chengdiao Fan — founders of the Pi Network project and leaders of the core team — are both Stanford University graduates specializing in computer science, and their academic credentials lend credibility to the project.
• With Pi Network's easy method of mining Pi coins, the founders are working to make crypto more accessible and inclusive.
• The Pi Network project has a strong community with over 60 million users.
• Though some have criticized how centralized Pi Network seems, the team says it aims to turn it into a fully decentralized network based on the Stellar Consensus Protocol.

How to avoid being scammed by someone impersonating Pi Network

You won’t come across a Pi coin scam on the actual Pi Network. Instead, you might get scammed by someone impersonating Pi Network. Follow these steps to stay safe:

• Trust only official channels. Stick to Pi Network’s official website, mobile app, and verified social media accounts such as the Facebook group, Instagram @pi_network, and X @PiCoreTeam. Avoid fake websites and double-check links and handles. Remember that accounts can be hacked, so stay cautious even if messages seem legitimate.
• Protect your account information. Don’t share your passphrase or private keys with anyone, including people claiming to be a part of the Pi Network team.
• Create strong passwords. Passwords that are easy to guess make it easy for scammers to hack your account. Capital letters, numbers, and special characters all help to make your passwords stronger.
• Use two-factor authentication. Two-factor authentication adds an extra layer of security to your account. Once you enable it, apart from your username and password, you’ll need an additional factor, like a code sent to your phone, to access your account.

How NordVPN’s Threat Protection Pro™ helps you stay safe

NordVPN’s Threat Protection Pro™ can help you avoid Pi Network scams by blocking phishing and malware. It prevents you from visiting fraudulent websites that host malware or are used for phishing attacks. You’ll also get an alert if you enter a page known for fraud or scams. If you click a link to what you think is the Pi Network website, Threat Protection Pro™ will be there to protect you. It will also keep you safe from malicious downloads and viruses, and prevent trackers from collecting data about you as you browse the internet overall.