There has been much controversy and speculation about the Pi Network project since it officially launched on the mainnet at the end of February. The price of Pi Coin has hardly changed in the past few days, trading in the range of $0.75–$0.80. Therefore, the largest cryptocurrency YouTube channel, Coin Bureau, with nearly 2.7 million subscribers, took time to clarify the Pi Network project.

In his deep-dive video, host Nick will analyze everything – from who really founded Pi, to how it works, how it makes money, and whether the Pi token will ever reach the magical $5 mark. Hint: It's not impossible, but it's also not what you think.

Let's start with the major players behind Pi. While the project mainly involves Stanford graduates Nicholas Kokalis and Chengdiao Fan, the original team actually consisted of four founders. Vincent McPhillip and Aurelien Schiltz were also part of the original core team. However, Vincent left the project under controversial circumstances and even filed a lawsuit, which was quietly settled in 2023. Aurelien stayed on and continues to actively contribute to Pi's codebase.

One of the most important things to understand about the Pi Network is how it actually works. Unlike most cryptocurrency projects that use proof of work or proof of stake, Pi runs on a modified version of the Stellar Consensus Protocol. It is extremely centralized – there are only 28 nodes and 3 validators, all of which are operated by the core Pi team. That level of control has raised red flags for those looking for a truly decentralized currency.

As for mining Pi, it’s not really mining in the traditional sense. Users tap a button once a day to prove they are human and active. It's more like a game reward system than a blockchain consensus mechanism. And while millions of users have undergone KYC to claim their tokens, only a small fraction of the total supply is actually unlocked and tradable.

This brings us to the tokenomics. Pi has a massive maximum supply of 100 billion coins. Sixty-five percent is allocated for mining, while the remainder is for the team, platform, and liquidity. So far, 7.2 billion coins have been mined, but only 2 billion are unlocked for users. Meanwhile, over 3 billion Pi are unlocked for the team and platform. That means the core team controls more circulating supply than the entire user base combined.

Now, the million-dollar question: Can Pi Coin really reach $5?

Technically true, but only under certain conditions. Low liquidity on exchanges makes price pumping easier. Only about 300 million Pi are sitting on known exchange wallets. This number is very small compared to other major cryptocurrencies. And if the team is strategically selling coins through OTC exchanges and using that money to work with market makers, they could artificially maintain the price high – at least for a time.

Nick explains that this kind of price manipulation doesn't only happen with Pi. It also happens with other major projects. But because Pi has a low available supply on exchanges, moving the price is much easier. That’s how some believe Pi could reach $5, even if its fundamentals don’t justify that valuation.

The video also mentions upcoming milestones that could attract more attention and potentially boost the price. These milestones include easily moving coins to the mainnet, converting forum tokens to Pi, and bringing more developers on board. But Nick warns that the lack of transparency and slow communication with the Pi Network community is holding it back. Even now, their roadmap seems outdated and incomplete.

There are also other concerns. The KYC process, handled internally by Pi, raises questions about privacy and the legitimacy of the data. If organizations and exchanges don't trust it, they won't participate. And without their support, Pi's growth could stall.

Finally, the Pi Coin craze is built on a strange combination of potential and mystery. It has millions of users, but very little liquidity. It promises decentralization, yet is still tightly controlled by a small group. And it talks about utility, but the ecosystem is still in its early stages.

So, can Pi Coin reach $5? Maybe, especially if low liquidity continues and interest spikes due to significant announcements or listings. But whether it can maintain that level – or even deserve it – depends on the level of trust the project can gain from the broader cryptocurrency community. Right now, this is a project worth watching, but perhaps you shouldn't bet the house on it just yet.