The post Pi Network News: Privacy and Centralization Concerns Cast Doubts on Pi Network’s Success appeared first on Coinpedia Fintech News Pi Network’s core team controls a staggering 82.8 billion Pi Coins out of the total 100 billion supply, according to data from PiScan. This overwhelming concentration of tokens has sparked concerns over decentralization, as such control gives the core team significant influence over the network’s future. While early-stage projects often retain large allocations, Pi Network’s figures are notably high. Regarding the information about the burning of PI tokens: yes, there might be some confusion. This is Stellar’s mechanism, where the fee pool is removed from circulation and considered burned. This mechanism exists in the Stellar core that Pi Network utilizes. We purely… — Piscan.io (@piscanofficial) March 7, 2025 Breaking down the numbers, the team holds 62.8 billion Pi across six wallets, while another 20 billion PI is stored in approximately 10,000 unlisted wallets linked to the team. Such heavy concentration raises questions about whether the network can ever truly become decentralized. A Small Validator Set Strengthens Centralization Worries Beyond token distribution, Pi Network operates with just 43 nodes and three validators worldwide. Compared to major Layer 1 networks —Bitcoin’s 21,000 nodes, Ethereum’s 6,600, and Solana’s 4,800—Pi Network’s setup appears highly centralized. Fewer nodes mean more control remains in the hands of a select few, making it easier to manipulate the network. PiScan, a blockchain analytics platform, also pointed out that Pi Network’s source code and on-chain data remain difficult to analyze due to a lack of openness. This lack of transparency has added another layer of skepticism around the project’s long-term viability. ChatGPT in KYC Process Sparks Privacy Concerns The Pi Network’s latest privacy update has introduced another point of contention. The project recently revealed that it uses ChatGPT to automate its Know Your Customer (KYC) process. While AI-driven identity verification is becoming more common, this move was not previously disclosed, leaving many users questioning how their data is being handled. According to the updated policy, Pi Network users must consent to their identity data being processed by ChatGPT and potentially other AI providers in the future. The use of AI in KYC adds complexity to data security and transparency, further intensifying privacy concerns. User Dissatisfaction and Dropping Interest Beyond centralization and privacy concerns, Pi Network users have also faced frustrations with mainnet migration issues and extended lockup periods. Many have resorted to selling their accounts due to limited access to their tokens. One crypto user criticized Pi Network, calling it a “pure scam” and questioning its decentralization. He pointed out that the project lacks true blockchain integrity, claiming that transactions displayed on the public blockchain have been removed—something unheard of in legitimate decentralized networks. One user called it a biggest failure and overhyped project with no real value. "The Pi Core Team has failed. Years of hype, zero real utility. Pi trades at joke-level rates, proving it's built on empty promises. No official exchange, no real adoption—just a slow-motion collapse disguised as ‘progress.’ The ‘future potential’ scam is over. Wake up!" #piscam pic.twitter.com/EJfeVxpFZY — . (@lavaarisss) March 9, 2025 These issues have added a negative impact on Pi Network’s popularity. Google Trends data shows that search interest in “Pi Network” has dropped from a peak score of 100 on its mainnet launch day, February 20, to just 12 today. This sharp decline suggests fading enthusiasm as users grow increasingly skeptical about the network’s long-term promise . With concerns over centralization, transparency, and user dissatisfaction mounting, Pi Network faces a crucial test ahead. Whether the project can address these issues and regain trust remains uncertain. FAQs Is Pi Network truly decentralized? No, Pi Network’s core team controls 82.8 billion Pi Coins and operates with only 43 nodes, raising major centralization concerns. Has Pi Network lost popularity? Yes, Google Trends shows a sharp decline in search interest from 100 to 12 since its mainnet launch, indicating fading enthusiasm. Will Pi Network be listed on Binance? Pi Network received 88% community support in Binance’s new voting model. If Binance follows its listing process, Pi Network could be listed soon.
