NOIDA (CoinChapter.com) — Pi Community’s introduction of Testnet 2 on Oct. 8, 2024, sparked renewed hypothesis in regards to the long-awaited Mainnet launch. The brand new testnet replace permits a choose group of node operators to change between Testnet and Mainnet seamlessly, elevating hopes for a smoother transition to the open community.

Moreover, the drastic discount in transaction charges to 0.0000099 Pi stirred pleasure amongst customers. With a deadline for KYC verification looming in Dec. 2024, the neighborhood hopes these developments sign progress.

Nonetheless, impartial analyst Toghrul Aliyev, also called u/doctorbirdbee, shared doubts about Pi Community’s future that also linger amid accusations of inflated person numbers and delayed timelines.

Destructive Cues and Rip-off Allegations Surrounding Pi Community

Toghrul Aliyev’s report offers an in-depth critique of Pi Community, highlighting a number of evident points. He attracts consideration to the discrepancy in Pi Community’s person base—whereas the platform claims to have over 60 million customers, solely 6.2 million wallets have migrated to the mainnet.

The substantial hole raises severe considerations about whether or not Pi is inflating its person figures to maintain curiosity within the challenge. Aliyev argues that this discrepancy may mirror a basic downside with the community’s scalability and credibility, casting doubt on its long-term viability.

Moreover, Aliyev identified Pi Community’s inflation downside, with the coin’s provide rising by over 106% in a single 12 months. The speedy inflation threatens to dilute the worth of Pi, particularly compared to Bitcoin’s managed inflation charge of 0.8%.

With out ample demand to match the rising provide, Pi holders may see their cash lose worth earlier than the community opens. Such inflation may undermine Pi’s worth proposition as a sustainable cryptocurrency.

Aliyev additionally critiqued the challenge’s so-called mining mechanism, which requires customers to faucet a button every day to “mine” Pi. This button-tapping bears no resemblance to conventional cryptocurrency mining, which generally secures the community and validates transactions.

As a substitute, it raises questions on whether or not Pi’s mannequin prioritizes person engagement and information assortment by way of advertisements slightly than decentralization and safety. The necessary KYC course of solely deepens these considerations, particularly since Pi’s aggressive assortment of non-public info may counsel a knowledge harvesting scheme slightly than a respectable blockchain challenge.

Regardless of the anticipation across the upcoming mainnet launch, these crimson flags proceed to cloud Pi Community’s future. Pi’s scalability and credibility stay in query with out addressing these basic points, doubtlessly hindering its long-term success.

Following Aliyev’s important report, somebody from the r/PiNetwork, doubtless the moderator, responded defensively. The person claimed that regardless of solely 6 million wallets, Pi’s exclusivity may guarantee its future worth.

Furthermore, the reply argued that considerations about inflation have been overblown, noting that Pi’s whole provide wouldn’t hit 100 billion anytime quickly. The person additionally burdened the significance of neighborhood power, suggesting that Pi may someday rival Binance Coin (BNB), dismissing the present IOU costs as irrelevant.

Nonetheless, Aliyev, responding underneath his Reddit moniker u/doctorbirdbee, countered that hope alone doesn’t construct worth. He famous that information—not neighborhood loyalty—determines a cryptocurrency’s price.

The analyst identified that Pi’s inflated market cap projections have been paying homage to Luna’s collapse and urged the neighborhood to stay cautious. In a subsequent reply, he dismissed privateness considerations surrounding Pi as overhyped.

Nonetheless, Pi’s KYC course of may turn out to be a major privateness threat, additional eroding belief within the platform. With the testnet 2 launch information, the neighborhood has turn out to be extra eager for a mainnet launch.

Nonetheless, although the Pi Community neighborhood stays hopeful, Aliyev’s report serves as a sobering reminder of the hurdles the challenge should overcome to satisfy its guarantees. With out actual progress on these important points, Pi Community dangers being relegated to a footnote in cryptocurrency historical past.