Pi coin denounced as a scam by Li Xiaolai: mobile phone “mining” has no main network and draws bitcoins
When BTC rose, the news of the internal test of the wallet from the Pi Network of “π Coin” attracted the attention of participants.
This publicly stated project was established in March 2019 as an “improved version of BTC”, which focuses on mining without consuming resources. In the past two years, participants can only “mining” through its centralized APP-users download the APP, log in and click once a day after registering an account, and automatically mine Pi coins. The current gameplay is the outdated “mobile mining” pseudo-blockchain.
Pi focuses on the low threshold “Zero Lu”, and has given high expectations with the benchmark Bitcoin. Promoters often use the high-yield return of BTC to increase the value expectations of the white crowd for Pi.
However, Pi Network cannot see information such as transactions and verification blocks, because this BTC-targeted project does not yet have open source blockchain network support, and no transfer transactions have been opened. It can neither carry out decentralized value circulation like BTC, nor does it have practical applications, so the value is doubtful.
Pi’s existing pull-in trend has continued for a long time, and more and more people have participated in it, and an over-the-counter market has also emerged. Someone bought Pi coins by signing a contract, and the price of each coin was up to 100 yuan.
In his early years, Li Xiaolai, a big coin in the currency circle, mentioned Pi in a live broadcast, and was later rumored to be Li Xiaolai as the Pi platform by promoters. He posted a number of Weibo posts, blaming Pi as a scam, “The person who dreams with Pi is very poor.”
Lack of value support, no blockchain application, Pi has only concepts and expectations at this stage. The rumors of the internal testing of the wallet and the opening of transfers inevitably make people speculate that this project will open up the circulation market. Participants must carefully evaluate its true value to avoid blind investment or transaction causing asset losses.
“0 Lun” mobile phone mining to get Bitcoin “painting cake”
After a round of correction, BTC once again tested the $40,000 price line. The call of the bull market is still high, and some outdated concepts have reappeared. Recently, a Pi Network project called “π Coin” by the participants showed new trends.
On January 11, the news of “Pi Wallet has begun internal testing” appeared in some speculation groups, and it was rumored that some “pioneers” would participate in the test next, and one of the functions was transfer.
The person who sent the message is suspected to be the promoter of Pi coin. For people who have been “mining” for a long time, this can be regarded as big news in the past two years, because it means that the coins from “0” may be circulated and realized. .
The official website of Pi Network shows that it was initiated on March 14, 2019. The project is composed of graduates of Stanford University. The main founder is Nicolas Kokkalis, PhD in Stanford University and a postdoctoral fellow in computer science.
Pi Network officially announced that Pi is a new cryptocurrency and peer-to-peer network. You don’t need to buy mining machines like BTC. You can mine coins using only mobile phones. The number of participants has reached more than 10 million.
Searching for Pi coins on the Chinese network, you can see a large number of promotional articles, and some people even set up various promotion websites for “sermons” to introduce how to participate in Pi and its value.
Honeycomb Finance learned from a Pi user that to participate in “mining”, you only need to download the app through your mobile phone. After registering with your mobile phone number, you can become a “pioneer”. Log in to the app every day and click the lightning button to automatically mine Pi coins. As you can see from the page, the current Pioneer mining speed is 0.12 per hour.
The above-mentioned user stated that the current Pi can only be mined, not traded, but a large number of people are already participating. He believes that once the mainnet goes live, the value of Pi “will be immeasurable.”
Where is the value of Pi?
The official APP describes it as follows: Pi is now about $0, similar to Bitcoin in 2008. The value of Pi will be supported by the time, attention, goods and services provided by other members of the network.
Judging from the current operation of the official APP, Pi has indeed gained users’ time and attention, but goods and services have not appeared in the past year or so. In July 2020, Medium’s previous article about Pi stated that this project will accept paid advertising in the future and is currently entering the phase 2 testnet part.
Although the value has not yet been reflected in the exchange of goods and services, the price expectations of Pi appear in many propaganda articles. It is often compared with mainstream crypto assets such as BTC, ETH, XRP, and the wording of high returns appears.
For example, an article wrote that the issue price of XRP in 2014 was 0.0000007 yuan, “If you bought five yuan at that time and sold it for 3.65 US dollars in January 2018, you could easily earn 100 million yuan.” The article also mentioned that Bitcoin stated that BTC was $0.0769 when it was first listed on the exchange. At that time, it used 1,000 yuan to buy 2,000, and it is now worth 500 million yuan. Immediately afterwards, Pi was described as “probably the next BTC”.
This article only gave expectations, and did not write out the more general reality of bitcoin holders-unholdable bitcoin and unpredictable high-volatility markets. And more so-called “digital currencies” have gone to zero.
Nevertheless, in the past two years, Pi has accumulated many participants, and the model of pulling people has continued to this day. Leo, a practitioner in the blockchain industry, revealed that last year, his mother asked him about Pi coins, saying that he was recommended by a friend for “mining” and gave an invitation code. After he told that “mobile phone mining is a false concept and unreliable”, his mother finally did not participate because he was not familiar with the operation. “But another of my relatives got in the car because’you don’t need to invest money anyway.’ I can’t persuade him, so I can only remind him not to invest money at any time.”
Not only middle-aged and elderly people, but many crypto asset investors are also playing Pi. An investor told Honeycomb Finance that he had been digging for Pi for more than a year, and he set an alarm clock every day to get in, and wanted to see if it was a joke or a feast. “For several years, the project team has confiscated a penny, and there is still a little hope for this insistence. Unlike some projects that have raised a lot of money and did nothing.”
Setting up an APP without spending money “0” is the biggest selling point of Pi Coin right now, but where will the attracted users be taken? Especially the recent rumors of opening the transfer function, “Once the transfer is opened, there will be transactions and speculation in the market. Under speculation, elderly people who don’t understand the principles can easily be fooled.” Leo is a little worried about his family’s mining of Pi coins.
No mainnet and no apps are accused of “pulling proof”
Pi is known by many users in the currency circle, and it originated from a live broadcast by Bitcoin VV Li Xiaolai in his early years. In that live broadcast, Li Xiaolai mentioned Pi quite jokingly, and then it was passed that he was “platform for Pi.”
Since then, Li Xiaolai sent several Weibo responses. He called Pi Network a “boring scam,” and angrily said that “if you mention Pi on my Weibo, it’s a direct blockade.”
Li Xiaolai has always been regarded as a “Bitcoin evangelist” in the currency circle. Pi has been so stunned, but he has increased his popularity. Even Weibo users will always bring Li Xiaolai and Bitcoin when he promotes Pi.
So, how does Pi, which is expected to be the “next BTC”, work?
Pi’s white paper mentioned that it builds a consensus mechanism based on the Stellar Consensus Protocol (SCP) and Federal Byzantine Protocol (FBA). The main feature is that mining does not consume resources, and does not consume electricity and traffic.
As for users, Pi has assigned them 4 miner roles, starting from the most basic “pioneer”, as well as contributors, ambassadors and nodes. Those who download and register the app and tap their phone to mine are “pioneers”. When they add others to the “safety circle” to increase the mining interest rate, they become “contributors”. The safety circle refers to small-scale members A network that guarantees and trusts each other. From this description, it is easy to think of the micro business under the social system of acquaintances.
The higher-level miners are ambassadors, and the “KPI” is also a puller. Each invitation to the Pi network will increase the mining rate by 25%. According to the white paper, if you want to become a “node”, you need “Pioneer” users to run the node software on a computer.
According to the introduction, Pi Network allocates Pi based on contribution. The more people you pull, the faster and more Pi you get. The white paper states that after starting mining, users can invite trusted friends and family members to join the community to increase “hourly wages.” Also, the early members of the network mine faster than the later members.
“BTC is a computing power competition mining under the workload proof consensus mechanism.” Some practitioners in the blockchain industry described Pi’s white paper after reading Pi’s white paper. Pi’s consensus mechanism is more like a proof of the number of people. There is a lot of mining, but this currency has to be supported by value. It is useless to rely on the belief and consensus between people.” He explained that Bitcoin is not entirely a product of consensus, and its value is in a decentralized way. Build a ledger network that stores a large amount of transaction data, open source, safe, non-tamperable, trustless, and even a typical application of the first-generation blockchain technology.
“People who buy coins in the secondary market value the return of buying low and selling high. There may not be many people who believe in its value, but they also invest money. And distributed miners invest the costs of computing power and electricity to build security. On the Internet, they use computing power to achieve consensus, which is a consensus that has paid a cost. How can anyone in the world get rich with wool?” The above-mentioned practitioners are not optimistic about Pi’s pure human consensus concept.
It should be noted that Pi’s miners and mining activities are completely run on the centralized APP application “Pi”, that is to say, the current Pi is not produced through a decentralized blockchain network, no matter what Level miners are not rewarded by packaging or verifying transactions.
Pi currently does not open transfers on the APP, and users cannot circulate with each other, and Pi cannot exchange goods or services. This means that the entire system itself has no value transfer. The current operating process is mainly “promotion-pulling people-mining mine”.
As it only exists in APP, Pi’s related data is opaque. Although it claims to have 10 million users, it is impossible to verify by the outside world. I am afraid that only APP operators will know. In addition, there is no way to know how much Pi is produced. According to the registration prompt, if the user does not perform KYC authentication, the account may be cancelled by the system and the mined coins will be lost. This also buried a hidden danger-the user’s personal information remained on this APP.
Judging from the current situation, if you want to become the “next BTC Pi”, it is not a blockchain network, more like a mobile phone “food collection” game dressed in a blockchain coat.
Be wary of derivative scams before OTC transactions
Since Pi has no blockchain network support so far, and has not opened transfers on the APP, how can the Pi dug by users be realized? A promoter also told Honeycomb Finance that Pi cannot be traded for cash at the moment, and it can only be traded after the mainnet goes live in the third quarter of this year.
Pi Network officially announced related plans, saying that Pi will continue to provide wallets, launch testnets and mainnets in the future. Prior to this, the official did not seem to encourage the realization of cash. Its official website clearly stated that all selling and pre-selling of Pi is now unauthorized and illegal. Do not purchase Pi from any third party. If you buy, you will be responsible for the consequences.
It seems that the official has discovered a phenomenon of third-party sales. In this regard, when Honeycomb Finance asked whether over-the-counter transactions were possible, although the above-mentioned promoters did not recommend selling early, they sent a sample “Pi Network Currency Trading Contract”. It shows that the buyer and the seller can sign a contract to transfer the Pi currency in the APP by transferring the mobile phone number. If KYC certification is required after Pi coins are open for circulation in the future, the seller must also cooperate with the buyer in the certification.
“Now it’s about two or thirty yuan,” the promoter said, someone was collecting Pi coins, and he had dug up two to three thousand Pi in the past two years. If he can sell at a price of 20 yuan, he can make a profit of about 500,000 yuan.
Another investor who participated in Pi sent a photo of the signed contract in a community. The contract is called “Pre-receipt of Blockchain Mobile Virtual Currency PiNetwork Agreement”, which shows that the buyer pre-collects 1,500 Pi from the seller at a unit price of 100 yuan and paid a deposit of 30,000 yuan. This contract is marked with the names and ID numbers of Party A (buyer) and Party B (seller), as well as fingerprints.
The authenticity of the agreement needs to be verified, but from the information described by the promoters and official tips, Pi has an over-the-counter market, and the prices are different, ranging from 20 yuan to 30 yuan, and 100 yuan. Considering that Pi mainly promotes mining efficiency by pulling people, it is easy to form an over-the-counter trading group among mature people.
However, Pi’s followers need to be vigilant, the current Pi lacks value support. Neither can it achieve decentralized value circulation like Bitcoin, nor can it provide DApp applications like the Ethereum (ETH) network. Due to the low mining threshold and unknown issuance, the actual value of Pi cannot be assessed.
According to official information, Pi Network will launch wallet, testnet and mainnet later, and Pi will only generate private/public keys at that time. However, the project is currently not open source, the outside world cannot track its development progress, and Pi’s development progress cannot be found on popular open source network channels such as Github.
Compared with other open source projects, Pi has been established for nearly two years, yet no blockchain network and applications have been born, or even a decentralized wallet system has been established. Even so, on various social platforms, there are still many Pi believers who promote and discuss the news of Pi every day, and some even shouted the slogan “1 Pi 100 USD”. Of course, some people questioned. Some of them dismissed this, and some argued for reasons, expecting Pi to bring considerable wealth.
A blockchain developer told Honeycomb Finance that Pi’s team can issue coins on the stock exchange at any time by mapping, but it must take into account that Pi has a large number of participants, the issuance is not transparent, and the expectations of early users are high, and subsequent hype will not be ruled out. , Or even a scam, users need to identify the value of tokens to avoid asset losses due to blind transactions or investments.
Will you participate in Pi?
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