Pi Network frustrates users with fund launch instead of promised ecosystem

In early April the Pi Core Team (PCT), the group behind it, said it would unveil a new ecosystem on May 14.

Despite the Open Network phase being live for over two months, the only notable development had been the shift from three central nodes to 23 global nodes, a move intended to enhance decentralization.

The ecosystem announcement was highly anticipated.

But on May 15 the PCT revealed only the formation of Pi Network Ventures and the Pi Foundation on its official blog.

According to the statement, Pi Network Ventures is "a development initiative of US$100 million held in Pi and U.S. dollars to strategically invest in startups and businesses, including those that advance the utility, adoption, and real-world impact of Pi," with the goal to "bring Pi to the real world."

The Pi Foundation, meanwhile, was described as "an ownerless organization intended to steer the long-term development of the Pi ecosystem and help facilitate the sustainability and functionality of the network for the future."

Hoang Ha, a Vietnamese Pi user since 2022, said: "I was expecting a major price surge after May 14 when the Pi Core Team promised to launch a new ecosystem. That did not happen."

He said he received around 500 Pi tokens last year through daily check-ins and recently spent over $1,000 to buy more tokens when the price dropped to $0.50 last month.

"Though I have not lost money, I am disappointed with how slowly the project is progressing after more than six years."

Many echoed this frustration on social media, questioning whether the project has the capacity to deliver what it promised. Some suggested the venture fund announcement was simply a strategy to attract new users.

"This is just a way for the PCT to say we are prolonging the project," Hoang Khang, a Pi investor for over four years, said in a Facebook group with 150,000 members.

His comment drew widespread support. "I do not see any serious effort to develop the ecosystem. If there is one, it is moving far too slowly and testing users’ patience."

Another user, Minh Anh, said: "The PCT once promised to release 100 decentralized applications by the Open Network launch in February, but we have yet to see any progress.

"Now, they announce a $100 million fund without providing transparency. So far it is all talk with no execution."

Market reaction to the announcement was similarly negative.

The token’s price plunged from $1.69 before the announcement to $0.81, a 52% drop, before recovering slightly to $0.88.

Hoang Anh, an admin of a Facebook group focused on Pi Network, said users remain hopeful of a functioning ecosystem where the token could be used in real transactions.

"This move by the PCT really challenges the community’s patience, especially those trying to prove Pi is a serious crypto project, not just a check-in app to collect tokens."

Nguyen Ha Minh Thong, founder of a private investment firm Cabo Capital in HCMC, said Pi Network could succeed if it seriously commits to its venture fund, builds the ecosystem and capitalizes on its 60-million-strong investor base.

But he cautioned that it is too early to judge. He pointed out several limitations, including the inability to withdraw Pi from exchanges, high price volatility, lack of transparency, and scam risks. "Pi’s price dropped sharply after listing and remains unpredictable. This kind of volatility may result from pump-and-dump schemes or fear of missing out. Inexperienced investors could get trapped and face heavy losses."

Crypto experts have previously warned about the risks tied to meme-coin-style projects like Pi Network, which are vulnerable to pump-and-dump cycles. Launched in 2019 Pi Network promoted itself as a way for users to mine the crypto for free by tapping a button in its mobile app daily.

Vietnam is among the countries with the most miners. The project has been controversial, taking nearly six years to launch its mainnet before finally allowing users to transfer Pi to exchanges for trading on Feb. 20 this year.

But the project is still viewed as an incomplete blockchain initiative, lacking smart contract functionality and open-source transparency.

To date the development team has only introduced limited updates, including a domain name auction feature, the PiFest shopping campaign and a few small-scale applications.