However, in the case of Pi Network, this situation has led to centralization criticisms, as 82% of Pi Coins are controlled by the project's core team.
Pi Network’s Token Distribution Raises Major Concerns!
Pi Network has gained significant attention in recent years. Users can mine Pi cryptocurrency through their mobile phones, allowing investors some control over their tokens.
Founded in 2019, Pi Network positioned itself as a mobile-focused crypto platform and saw massive growth in 2024.
However, PiScan data reveals a different reality. Out of the 100 billion Pi Coins, 82.2 billion are held by the core team, giving them substantial control over the network.
Most Pi Coins belong to the project's founders, with PiScan data showing that 62.8 billion Pi is stored in six different wallets. The remaining 20 billion is spread across 10,000 undisclosed wallets, all still under the core team's control.
Crypto Investors on High Alert: Major Concerns Arise!
It is not uncommon for blockchain or crypto project founders to hold a significant amount of tokens. However, the excessive concentration of tokens raises questions about the true decentralization of Pi Network.
This issue has sparked heated debates within the Pi Network community. A crypto investor named Wyi Gaius commented on X (formerly Twitter):
"What’s happening with Pi Network is confusing because this signals centralization, not decentralization."
Another concern among the community is the low number of validators. Currently, only three validators and 43 nodes are active worldwide.
Compared to major networks, these numbers are strikingly low:
Bitcoin (BTC): 21,000 nodes
Ethereum (ETH): 6,600 nodes
Solana (SOL): 4,800 nodes
This limited number of nodes creates the perception that a small group controls the network, making it susceptible to influence from just a few individuals.
However, not all Pi investors are worried about this. The six-year-old blockchain project continues to develop and achieve new milestones.
New Privacy Policy Sparks Major Controversy!
Recently, the Pi Network team released a privacy policy update that has caused a significant uproar. This update introduces AI-powered identity verification, meaning ChatGPT will automate the Know Your Customer (KYC) process.
Pi Network is not the first crypto project to use AI technology, but some users are concerned about how their personal data will be handled.
Now, ChatGPT processes users’ personal information instead of company employees, raising privacy, security, and transparency concerns.
The new privacy update, which is available online, states:
"We use ChatGPT as a trusted AI partner to automate identity verification processes and enhance security measures. Users utilizing our KYC services acknowledge that ChatGPT and future AI providers may be part of the KYC process."
This announcement has created uncertainty among Pi Network investors and deepened decentralization concerns.
On the other hand, positive developments—such as Pi Network’s goal to reach a $16 billion market capitalization by February 2025—continue to attract attention.
Source: 99bitcoins.com
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