Is Pi Coin a Scam?

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What Is Pi Coin?

Pi coin is one of the most controversial coins currently present on the market. On one hand, it shows a promising movement of the market to become more inclusive, especially for miners. On the other hand, it lacks transparency and may seem like a scam.

What we are here to determine today is whether or not the Pi coin is a scam or a legit coin. We have looked at all of the controversial media and blog posts during its phases, and the latest developments, in order to determine the truth about Pi cryptocurrency.

The idea behind this coin is a very simple one - it offers anyone a chance to mine it from their mobile phones. This is supposed to throw us back to the beginning days of Bitcoin. The CPU power needed to mine Bitcoins could be found in any laptop.

Now, you need a whole mining farm because the first one to solve the problem is rewarded with a Bitcoin. So the idea to make the market more inclusive for miners who simply don’t have the money to invest in high-tech seems like a great opportunity.

How Does Pi Coin Work

Guided by the accessibility of mining, the creators, Stanford PhDs, developed a mobile app that allows you to mine Pi coins. As far as the design and user-friendliness go, the app couldn’t be more simple. Once a day you have to log in and click a button to mine Pi coins.

However, this is where the controversy begins (and the question: Is Pi coin legit?). In order to join the Pi network, you have to be invited using a referral code from another miner. That miner then receives a reward in the form of additional Pi coins. In this Pi network review: Is Pi coin legit or scam?, you can see how this resembles a pyramid scheme, which is why many question the legitimacy of the coin.

But things get even more complex from here. Because pyramid schemes are illegal in many countries, only the initial sign-up rewards the referrer. The performance of the people they recruited has no bearing whatsoever on their total amount of Pi coins. Neither does the number of their recruits’ referrals, which is supposed to propone the legitimacy of the project.

Furthermore, to “fund the project”, as the creators put it, every time you enter the app, you will see targeted ads. This is nothing new, as the same is often done by social media platforms. They are free to use, as they sell your data to third parties. And so does the Pi coin app.

So, why is this so controversial in this case? Because it directly impacts the value of the coin. If you look at it closely, only the developers of the app are currently making money from selling the users’ data. It is a clear conflict of interest, as once the coin goes public and can be traded, there will be no value to the app and they will lose advertisers (and subsequently the gains).

It is actually not in their interest to see Pi coins being traded on any exchanges. There are two reasons for this. The first one is that the coin may lose value really soon, prompting people not to log into the app every day. The second reason is that, as long as the coin is not listed on the exchanges, the Pi community grows.

However, in December of last year, phase III of the project began, a.k.a. Mainnet. And while they have started the phase when the coin should go live, you are currently not able to trade Pi coins on any exchanges.

Pi Coin Price Prediction: Is There a Future?

Since the Pi coin is not listed on any DEX and you are unable to trade it, it has no value. There are price predictions available all throughout the internet. As you search for them, beware of the Pi coin price prediction scams and evaluations by incompetent or emotionally-invested individuals.

In our research, we have seen price predictions fluctuate from a few hundred dollars per coin to a fraction of a penny. This is why it is important to always consult credible media outlets such as Trade Crypto media.

Currently, the price estimate of the Pi coin is $0.007077, based on cryptocurrency price prediction websites WalletInvestor and Digital Coin Price, as shown below.

As you can see from the above screenshot, the WalletInvestor sees the Pi coin as a bad and high-risk investment in the one-year period, predicting its price will drop to $0.000001.

Another website that uses technical data and models in its price prediction matrix is Coin Data Flow. You can see below how the price of the coin will behave, as per various models. Keep in mind this is based on the starting price estimate of the Pi coin of $1.44.

So if we look at how some companies have started, the Pi coin may see a great increase in value. However, due to the controversy surrounding it, any of these scenarios are highly unlikely.

This other chart shows how the coin has the potential to follow Bitcoin’s growth path. This model is often implemented in predicting the prices of cryptocurrencies, however, it isn’t a universal rule. So, to answer your question, does the Pi coin have a future? It is possible, but we doubt it.

Final Thoughts: Pi Digital Currency Scam or Legit?

What is Pi coin? This is a baffling question. On one hand, we have this innovative approach to mining (though they are not the first ones to come up with it). On the other hand, the sheer amount of personal data they sell to third parties is reason enough not to go anywhere near this project.

Is Pi coin a scam? While Pi network, and subsequently Pi coin, may be legit, we don’t see that this coin has a future. Even if there is an ICO at some point, this coin, like so many before it, will see a dramatic rise in price in the first few days, only to drop into oblivion later.

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