Analyzing Pi Network: The Cryptocurrency Religious Survival Logic Behind the "Air Coin" Frenzy
On the streets of Jakarta, Indonesia, a motorcycle transaction using Pi coins as the medium is taking place. Pi coin, a cryptocurrency project originating from the Stanford laboratory, has, over a period of four years, attracted 35 million users worldwide and established a huge community of believers. While the mainstream cryptocurrency field is intensely competing in terms of technology, Pi Network has, in an unconventional way, accomplished an extremely astonishing user education practice in the development of Web3.
I. Expansion like Missionary Work: The Viral Spread Secrets of Pi Network
On March 14, 2019, Pi Network deliberately chose the same date as Pi Day for its launch. This detail implies the project team's profound understanding of the power contained in symbols. The Pi Network created by the team led by Nicolas Kokkalis can be regarded as a model of "minimalism": a mobile mining mode without gas fees, an intuitive computing power dashboard, and an 积分 system based on social fission. These three key elements precisely meet the psychological needs of users in the sinking market.
From the perspective of technical implementation, the project team has demonstrated excellent cost control capabilities. For five consecutive years, they have continuously adopted H5 encapsulation technology and invested 90% of the development budget into two core modules: the real-time revenue feedback system and the three-level fission system. Among them, the design of the "security circle" is particularly ingenious. It establishes an acquaintance network by reading the user's address book and replaces the traditional money incentives in pyramid schemes with "trust endorsement", enabling the conversion rate of early users to exceed 62%. This missionary-like communication structure makes every user a mobile promotion point.
II. Faith Construction and Value Illusion: The Self-fulfilling Prophecy of Cryptocurrencies
When the project team bluntly stated that "Pi currently has no value", it unexpectedly ignited the creative enthusiasm of the community members. The UGC ecosystem construction of the Brainstorm section is essentially a large-scale collective psychological suggestion. From the exchange of motorcycles in Indonesia using Pi coins to the settlement of building materials transactions in Vietnam with Pi coins, the barter system spontaneously established by users perfectly replicates the classic scenario of the origin of currency.
This reverse operation cleverly utilizes the endowment effect in behavioral economics. When users obtain tokens by investing time instead of money, they will have a stronger sense of value recognition for them. Data shows that among users who have completed KYC, 83% continue to participate in community activities, with an average daily stay time of up to 47 minutes, which far exceeds that of professional wallets such as Coinbase Wallet.
The project team has a deep understanding of controlling the narrative rhythm. The repeated delays in the mainnet launch have not weakened users' confidence but have instead become a catalyst for strengthening consensus. Just like believers waiting for the arrival of the Messiah, community members have continuously deepened their belief in Pi Network amidst the fog of "technical upgrades". During the inscription boom in 2023, derivative projects such as PIIN created a total trading volume of over $150 million, indicating that this consensus built on "nothingness" already has actual economic influence.
III. Walking on the Edge of Regulation: The Operation Mode of a Suspected Ponzi Scheme
CCTV's classification of Pi Network as a "new type of online pyramid scheme" is not without basis, and the risk factors in its economic model are quite obvious. By creating a false scarcity through the "lock-up reward" mechanism and controlling the circulation of tokens through KYC verification, it essentially constructs a manipulable "fund pool". Data shows that among the 19 million users who have completed KYC, 76% are from regions with relatively weak financial infrastructure such as Indonesia and India.
However, the traditional pyramid scheme model cannot fully explain the operation mode of Pi Network. It has creatively avoided legal red lines, not promising investment returns, not conducting direct fiat currency transactions, and relying on community autonomy to complete the transfer of value. This seemingly "clean" structure has allowed it to move in the gray area of regulation in regions such as Vietnam and the Philippines.
IV. The Uncertainty of the Future: The Dilemma of Value Realization for 35 Million Users
The project team of Pi Network faces difficult balance choices. The wavering of the technical roadmap has exposed its fundamental contradictions: should it strive to become a real public chain or retreat to become a social points system? The launch of the testnet wallet and the simultaneous development of the browser product show the team's difficulties in technical implementation.
The data model also reveals potential liquidity risks. Calculated according to the current mining rate, the theoretical circulation volume has exceeded 30 billion coins, but through KYC verification and the lock-up mechanism, the actual circulation volume may be controlled within 5%. This artificially created scarcity seems to be accumulating strength for listing on an exchange in the future, but it also hides huge risks.
Referencing the listing process of Shiba Inu, if Pi Network can be listed on a mainstream exchange, it may trigger a warm market response in the short term. However, the real risk lies in how to avoid an avalanche of selling pressure when mining stops and a large number of tokens are released. The KYC verification authority in the hands of the project team may become their last means to control the situation.
V. New Cognitions in the Web3 Field: Development Strategies for the Sinking Market
The success of Pi Network has brought three subversive cognitions to the cryptocurrency industry:
Anti-elitist Product Concept: Reducing the cognitive threshold of users to the lowest level, replacing complex technical displays with simple and understandable interactive designs. The design concept of its mining interface is similar to TikTok's "infinite scroll" mechanism, both aiming to reduce the operation difficulty for users and increase their participation.
Practice of the Faith-driven Economic Model: By having users invest time instead of funds, a unique value recognition system is established. The behavior of users clicking the "lightning button" to mine every day, in essence, is to continuously strengthen their recognition of the value of Pi coins.
Operation Method of a Global Community: In Telegram groups, administrators manage the community using 话术 similar to religious propagation, depicting the technical development plan as a "promised land", thus creating a digital community that transcends national boundaries.
The inspiration brought by this large-scale social experiment may be that when the cryptocurrency industry focuses on complex technologies such as ZK-proof, the real power to achieve breakthrough development may come from the grasp of the most primitive human nature. Pi Network has proven in five years that under the appearance of decentralization, the ancient centralized communication and operation strategies are still effective.
When the moment of the mainnet launch finally arrives, will the 35 million users be greeted with the realization of wealth or the bursting of a bubble? This answer may be hidden in the "lightning" that every user clicks for mining every day.
