Pi Network, a decentralized mining initiative that has not yet launched its mainnet, is preparing to be listed on the global cryptocurrency exchange OKX. However, just weeks before this launch, concerns about the KYC (know-your-customer) verification process have emerged among traders and current PI users.
Pi Network is designed as a social cryptocurrency and smart contracts platform for everyday individuals. It introduced mobile mining, making it easier for people to engage in cryptocurrency mining.
The project has faced criticism largely due to delays in launching the mainnet and its referral and token lockup policies.
Pi Network achieved a major milestone by verifying 10 million users, an important step toward going live. Soon after this announcement, many traders, especially early users, took to social media to express frustration that their KYC process had been unresolved for years, even after submitting necessary documents.
One user pointed out that despite having joined Pi Network in 2020 and completing KYC verification with their passport and face check, their approval remains pending. They requested either approval or the chance to resubmit to participate in the Pi ecosystem.
Another individual highlighted an issue where users had mined Pi tokens for years, with hopes of the mainnet launch. Now that the launch is approaching, KYC requirements are blocking users from passing verification, rendering their tokens useless.
The initial deadline for KYC verification was pushed from November 31 to December 31, and then again from December 2024 to January 31, citing that many users had not migrated tokens to the mainnet. Users now have an additional 15 days for verification, but the major hurdle remains the approval process.
Some users expressed surprise that a decentralized mining project, which claims to uphold decentralization, is listed on a centralized exchange.
Pi Network has faced accusations of being involved in a multi-level marketing (MLM) scheme. This project, under development for nearly six years, has announced its mainnet launch for February 20.
Critics argue that most of its tokens are held by top founders, raising concerns about centralization and MLM practices. Pi Network’s connections in China and its referral programs have drawn comparisons to pyramid schemes, where participants earn rewards by recruiting new members. Some have labeled it the largest MLM scam in Asia.
Additionally, some users questioned why OKX would list a project without a mainnet, public blockchain explorer, or a transparent history of exchange listings and delays.
