Pi Network still has barriers related to its current development stage, liquidity, legal risks...
Why hasn't Binance listed Pi?
As of now, Pi Network is still absent from the largest cryptocurrency exchange in the world, Binance. Listing on this exchange could significantly boost the value of Pi, bring more credibility, and increase market access. However, Binance has not provided any feedback yet.
Based on industry factors and trends, Mr. Nguyễn Hà Minh Thông – an investment expert – has analyzed the reasons why Binance has not yet listed Pi Network.
Accordingly, Pi Network launched its mainnet by the end of 2024, but it remains in an 'enclosed' state or only partially open. This means that Pi transactions are still limited within the internal ecosystem, with no real liquidity on the open market. Binance usually requires projects to have fully operational, public, and verifiable blockchains to ensure transparency and stability when trading. Given Pi's current status, major exchanges like Binance find it difficult to accurately assess the level of decentralization or technical risks, causing them to delay listing.
The tokenomics of Pi Network is a controversial point. The total supply of Pi is reported to be 100 billion tokens, but the actual circulating amount (currently about 6.8 billion according to some sources) is unclear. The Pi Core Team once reduced the supply by removing 10 million coins without specific explanations, raising suspicions about the possibility of price manipulation. Binance, with its strict vetting process, needs clear data on lock, burn, and token distribution mechanisms. This ambiguity makes them hesitant, as listing a coin lacking transparency could lead to strong price volatility or accusations of the exchange harboring an untrustworthy project.
The legal factor is also a major obstacle. Binance is under significant legal pressure in many countries, especially the U.S., with allegations of money laundering and financial regulation violations. In this context, they are extremely cautious when selecting coins to list, prioritizing projects with clear legal status. Pi Network, despite having a large user base (over 65 million app downloads), has not been officially recognized by any regulatory authority. In Vietnam, cryptocurrencies are not considered legal, and in China, Pi has been warned as a 'pyramid scheme'. If Pi is listed and then labeled illegal, Binance could face litigation risks or loss of credibility.
Another obstacle for Pi is the lack of liquidity and public trading activity. Pi is currently primarily traded through OTC channels such as Telegram or some small exchanges, with strong price fluctuations. Meanwhile, major exchanges like Binance only select projects that have undergone a clear price establishment process.
Pi Network has been criticized for its high level of centralization – the Pi Core Team controls all current mainnet nodes, contrary to the decentralization principle that major exchanges like Binance usually prioritize (such as Bitcoin or Ethereum). Moreover, the development team (led by Nicolas Kokkalis) is quite secretive, not publicly sharing a clear roadmap or complete source code. This raises suspicions from the cryptocurrency community that Pi could be a scam or at least a project lacking seriousness. Binance has previously been criticized for listing junk coins and does not want to take risks with such a controversial project.
Binance not listing Pi may also be because they don't see sufficient benefits. With its number one position, Binance focuses on coins that already have a foothold (BTC, ETH) or new projects with explosive potential (like TON from Telegram). Pi, despite having a large community, does not bring immediate value to the exchange – no huge listing fees, no strong hype to attract new users. Meanwhile, Pi Network seems to want to build its own ecosystem (with Pi Day, KYC, .Pi domain), so listing on Binance may not be their priority, and Binance is not in a hurry.
"Binance's decision not to list Pi is not because they 'look down' on the project, but because Pi has not met the stringent technical, legal, and market standards that this exchange requires. From the unlaunched mainnet, vague tokenomics, to legal risks and questionable credibility, Pi remains a big gamble for Binance. Meanwhile, the Pi community may be confident that the project 'does not need Binance', but in reality, without recognition from major exchanges, Pi struggles to escape suspicion and achieve true value," the expert concluded.
Warning about the investment risks of Pi Network
On the morning of April 9th, the price of Pi on the OKX exchange was trading around 0.55 USD/Pi. Compared to the peak price of 2.99 USD, the price of Pi has decreased by more than 81.6% at this time. The drop in value has led to a market capitalization of 4.06 billion USD.
The continuous drop in the price of Pi, according to experts in the cryptocurrency field, is unavoidable as this virtual currency is continuously unlocked in cycles to be traded on the market.
According to statistics from the PiScan data platform, in April, there will be about 124.2 million Pi tokens unlocked. On average, each day, about 4.1 million Pi will be distributed to users and are likely to be sold on the market. Notably, on April 3rd, a total of 6.8 million Pi tokens were unlocked.
In an official announcement, the Hanoi Police warned residents about investing in the cryptocurrency Pi Network.
Authorities stated that according to Vietnamese law, virtual currencies in general and Pi in particular have not been considered assets. Therefore, incidents, issues, or disputes arising from Pi trading activities are very risky and difficult to be legally protected or resolved.
At the same time, according to regulations from the State Bank, virtual currency is not a means of payment. Therefore, any individual or organization using virtual currency in general and Pi in particular for payment activities will be penalized or may face criminal liability.