Pi Network: A Critical Analysis – Пульс новости ‘7’

Headline:

Where Are the Wallets? Pi’s User Numbers Don’t Add Up

Pi Network claims to have over 60 million users, yet data from blockchain explorers shows only a fraction of that number have wallets. This raises concerns about the accuracy of Pi’s user count.

One possible explanation for the discrepancy is that many users have not yet migrated to Pi’s Mainnet. However, even including those who have not migrated still leaves a significant gap in the reported user numbers.

The lack of active wallets also raises concerns about the actual usage of the network. Only a small percentage of Pi’s users appear to be actively using the platform.

Headline:

The Inflation Problem Pi Network Doesn’t Talk About

Pi Network has a high inflation rate, with the circulating supply doubling within a year. This level of inflation could erode the value of Pi tokens over time.

The inflation is primarily driven by Pi’s mining rewards system, which lacks a mechanism to control the issuance of new tokens. As a result, the supply of Pi is constantly increasing, while demand remains uncertain.

The inflationary nature of Pi’s tokenomics poses a significant risk to its long-term value. Investors should be aware of this risk before investing in Pi.

Headline:

Should We Stop Calling It Mining—More Like Screen Tapping?

Pi Network’s “mining” process involves tapping a button on a smartphone. This process does not provide any real security or validation to the network.

Instead, Pi relies on a consensus mechanism that is similar to Stellar‘s Federated Byzantine Agreement. This mechanism does not require users to perform any computational work to validate transactions.

As a result, the vast majority of Pi’s users do not contribute to the security or functionality of the network. Their participation is limited to tapping a button and collecting rewards.

This raises concerns about the true value of Pi’s “mining” process and the network’s overall security.

Headline:

Is Pi Network a Data Harvesting Scheme?

Pi Network’s mobile app displays unskippable ads and requires users to undergo a strict KYC (Know Your Customer) process. This raises concerns about the platform’s data collection and privacy practices.

The app’s ads are designed to generate revenue, which suggests that Pi Network may be more interested in collecting user data than developing its cryptocurrency project.

The KYC process requires users to submit sensitive personal information, including a selfie video and a photograph of their passport or ID. This information could be used for malicious purposes if it is not properly protected.

Pi Network’s terms of service also give the company the right to share user data with affiliates and third parties. This raises further concerns about the privacy of users’ personal information.

Pi Network is a cryptocurrency project that has gained popularity in recent years. However, there are several concerns that have been raised about the project, including the accuracy of its user numbers, the inflationary nature of its tokenomics, the questionable mining process, and the privacy and data concerns.

Investors should be aware of these concerns before investing in Pi Network. The project is still in its early stages of development and there is no guarantee that it will be successful in the long run.