The exchange Houbi officially opened the Pi (Pi Network) currency spot trading pair at 17:00 last week (29th). The enthusiasm of investors caused the token to quickly approach $62 within half an hour from the opening price of $0.01, and continued to break through new highs in the evening of the same day, reaching a maximum of $345, a maximum increase of 30,000 times!
However, due to the fact that there are many controversies about the listing of Pi coins on Huobi, there is no official authorization, and many people in the currency circle even regard it as a "pyramid scheme scam", so the following dynamic area sorts out 9 common questions and answers about Pi coins. Hope that helps you understand it better.
1. What exactly is Pi coin? Is this a scam?
The main users of Pi Coin can continue to obtain tokens as long as they download the official APP and interact with each other every day, aiming to create a low-threshold, low-cost cryptocurrency network. According to Google play official website data, the app has accumulated more than 50 million+ downloads so far, and the official also claims that the number of daily active users exceeds 10 million.
However, based on actual research in the dynamic area, in fact, the current application of Pi Coin is almost a centralized product. The so-called Pi coin transactions (those who pass KYC can conduct P2P transactions between users) only interact with the centralized server with their transfer records, and there is almost no essential difference from traditional network operations.
Although participation in the project currently does not require a large investment, investors still need to be careful about possible real-name registration information leaks, or the risk of applications being embedded with malicious viruses.
2. The market value of Pi coin actually exceeds that of BTC? How is this going?
The reason why it is said that the market value of Pi Coin surpasses that of Bitcoin is because according to the white paper updated by Pi Network at the end of 2021, the maximum supply of the token is set at 100 billion pieces. This also means that if calculated based on the current highest selling price of Huobi, the fully diluted market value is as high as 34.5 trillion US dollars, which is nearly a hundred times higher than the diluted market value of Bitcoin (348.7 billion US dollars)!
But what we need to know is that the main network of Pi Network has not yet been launched, and the current transactions on Huobishang have not been officially authorized and are more like futures. Therefore, whether it can reflect the true value of Pi coins needs to be marked with a big question mark.
3. After the Pi coin was listed on Huobi, it rose by more than 10,000 times in one day? Why do some people say that they are trading air?
Huobi has not yet opened the deposit and withdrawal of Pi coins, that is to say, no one can transfer the Pi coins in their hands to the exchange for sale. Strictly speaking, the tokens that users currently buy are not spot, but more like a transaction with no delivery date. Pi coin "futures" , it is easier for interested people to quickly raise the price of the currency with small funds.
In addition, Pi Network's official Twitter tweeted this morning (30) that they have not authorized any exchange to list Pi coins ; and the official website also indicates that all pre-sales of Pi coins are unauthorized and illegal , warning users not to purchase tokens from third parties or do so at their own risk.
That's why some people say that the current transaction is simply "trading air" and has no real value.
4. I have a lot of Pi coins, how can I sell them on Huobishang?
According to Huobi Exchange’s announcement on the 29th, until the Pi Network mainnet is successfully launched, the Pi coin recharge and withdrawal functions will continue to be closed. So all progress still has to wait for the latest development of Pi Network.
5. So, when will the Pi mainnet be launched? When will this money become real?
Pi Network was born in March 2019. Originally in December 2021, the official announced that it was preparing for the launch of the main network, which is mainly divided into two stages:
- The first stage is a "closed main network" with a firewall (which has been launched in the middle of this year), and temporarily only supports basic operations such as accessing Pi wallet and Pi browser.
- The second phase of the open main network is expected to be launched in March or June 2022; but there is still no follow-up.
6. How to get Pi coins? Why are so many people mining Pi coins?
The mining process claimed by Pi Coin is very simple. Users only need to "enter the app and click once every 24 hours" to easily obtain tokens; the registration process is also very simple. It can be said that as long as there is a mobile phone and the Internet, everyone can Tokens can be obtained.
However, unlike the Bitcoin or Ethereum mining that we are familiar with, Pi Network does not carry out the most basic "verification" process of mining. Instead, it is more like you developed an app today. Users only need to log in and interact every day, and they can get it for free. Tokens, and the rewards received currently do not actually exist on the chain, but on the client side of the mobile phone.
In addition, its official developers have not disclosed the relevant original code so far.
7. Some people say that they want to sell Pi coins to me now, is it credible?
At present, in addition to Huobi Exchange, there are also some small exchanges that have successively opened Pi coin trading, but the deposit and withdrawal functions are currently not open, and the transaction prices of different platforms are also very different. So if someone says to transfer Pi coins to you from the exchange, please be very careful.
If you want to perform P2P transfers between users, you must first complete the KYC identity verification before you can activate this function. However, the mainnet has not yet been launched, and the official timetable has not been clarified. Readers are advised to do their homework and be careful of risks before investing.
8. How much is the total number, and what is the concept of a market value exceeding 34 trillion?
According to the white paper updated by Pi Network at the end of 2021, the maximum supply of the token is set at 100 billion pieces. This means that if calculated based on the current highest selling price of Huobi, the fully diluted market value is as high as 34.5 trillion US dollars, which is nearly a hundred times higher than the diluted market value of Bitcoin (348.7 billion US dollars)! It is also more than 40 times larger than the overall cryptocurrency market cap.
Even compared with the traditional financial sector, it is three times the total market value of gold and 90% of the current total market value of US stocks. But is the value unduly overvalued? It is worth our reflection.
9. Traded Pi coins and wanted to withdraw money but was blocked by Huobi?
Earlier this week, it was reported in the community that some users were unable to withdraw funds after trading Pi coins for profit, and needed to explain the reason for the "abnormal profit" first , and some users posted relevant screenshots.
In this regard, the official customer service personnel explained that after the listing of Pi coins, there were three abnormal accounts showing large profits. After an internal audit investigation, it was found that some transactions were abnormal band transactions. Therefore, based on risk control factors, this account was suspended. The transaction behavior of class accounts.
However, despite the quick clarification from the official, the anger of dissatisfied users and investors still could not be quelled. Some members of the community ridiculed : "The Huobi official is a referee and player", "Pi mainnet has never been launched, so where does the mouse warehouse come from?"
