The Pi Network app has achieved a significant milestone, surpassing 10 million users who have completed the know-your-customer (KYC) process to verify their identities, as announced on April 16. The Pi team has outlined a series of milestones, including reaching 15 million users who pass KYC, as a prerequisite for launching the mainnet and making its tokens tradable. With 10 million accounts already verified, the KYC target will be attained once an additional 5 million users complete the verification process.
Despite this notable accomplishment, some skepticism has been expressed regarding the utility of Pi tokens. Business analytics platform AIMultiple has suggested that Pi may not offer value to users, citing the fact that it cannot yet be redeemed for fiat currency on exchanges. Initially launched in 2019 as a centralized application, Pi Network allows users to generate Pi tokens daily through the app but does not currently support peer-to-peer transfers. However, the platform has seen 10 million Pioneer users complete their identity verification through Pi KYC, leveraging a proprietary approach that combines automation with crowdsourced human verification.
Nicolas Kokkalis, co-founder and head of technology at Pi, has emphasized the significance of this achievement, highlighting the industry's potential to succeed without relying on fiat services. He envisions the new KYC system facilitating the implementation of Web3 services involving asset ownership, thanks to its authentication requirements. The team has set ambitious conditions for launching an "open network" or mainnet in 2024, including developing 100 Pi applications and completing various technical, product, business, and legal tasks.
However, AIMultiple analyst Cem Dilmegani has expressed doubts about Pi Network's benefits for users, likening its structure to direct sales or affiliate marketing systems. Dilmegani suggests that the founders stand to gain the most from Pi Network, as they have monetized the user base through optional video ads and traffic generation. While the possibility of launching a blockchain mainnet exists, Dilmegani believes this would lead to a rapid devaluation of the token as users sell on the market, potentially undermining the app's value to advertisers.
Pi Network has adopted an unconventional approach to blockchain development, opting for an intermediate closed network period before launching an open network. This strategy aims to build utility and community engagement, with the goal of ensuring a robust network at the time of the open network's launch. Despite criticisms and uncertainties, Pi has achieved several milestones since its inception, including the development of various mobile apps, a testnet, and a mainnet blockchain, as well as implementing a novel KYC solution. The team emphasizes the importance of patience and thorough preparation for a successful launch of the open network.
