KYC Backlog Threatens Pi Network’s Credibility and Future

Pi Network users continue to express frustration over a prolonged and stalled Know Your Customer (KYC) verification process, which has left a significant portion of the community in a "tentative" status. As of the latest reports, the network has approximately 60 million active users, but only 16 million have successfully created wallets, leaving around 44 million users in limbo, neither verified nor migrated to the mainnet [1]. This has raised concerns about the project’s credibility, transparency, and ability to meet its long-term goals.

Users have voiced concerns over the slow-moving process, with one community member estimating that, at the current rate, it could take up to a decade for some to access their tokens [1]. The KYC process is a critical prerequisite for accessing the mainnet, and although recent improvements have removed the 30-day waiting period for new users, the backlog of existing users remains unresolved. The situation has been exacerbated by the fact that the three-year lockup period for Pi holdings only begins once users complete migration, further delaying access to their assets [1].

In response, Pi Network has been rolling out technical updates, including a major protocol upgrade from version 19 to 23 on August 27. This upgrade is part of a broader strategy to improve KYC scalability and embed identity verification directly into the blockchain. The protocol also plans to allow trusted third parties to serve as verification authorities, aiming to create a more decentralized and community-driven process [1]. However, these efforts have not yet translated into significant improvements in user migration or price performance.

Market sentiment has been bearish, with Pi Coin trading at around $0.34 as of late August 2025, a sharp decline from its 2025 high of $3.40 [2]. Despite the protocol upgrade, the price has remained subdued, trading below its 20-day exponential moving average. Technical indicators, such as the Chaikin Money Flow, also suggest weak inflows and increased sell-side pressure. If the current trend continues, Pi could retest its all-time low of $0.32 [3]. The lack of a strong price response to the upgrade and other recent developments highlights the market’s skepticism about the project’s progress and its long-term viability.

The concerns are not limited to technical or user experience issues. A significant portion of Pi holders—approximately half—fear a potential collapse by 2026 due to liquidity challenges, slow Mainnet development, and large-scale token unlocks. The recent unlock of 163 million PI tokens valued at $60 million is seen as a warning sign, with another 160 million tokens expected to be emitted in August 2025 and over 1.27 billion tokens (~$2.5 billion) projected for the following year [2]. Without a corresponding increase in demand, these large token unlocks could flood the market and drive the price even lower.

Meanwhile, the Valour Pi ETP, a product designed to provide institutional and retail access to Pi, has attracted minimal demand, with just $1,967 in assets under management as of early September 2025 [4]. This weak reception underscores the broader lack of confidence in Pi’s market potential and the challenges of gaining traction in a competitive crypto space. The project’s absence from major exchanges and the slow progress on Mainnet implementation have further eroded trust.

Despite these challenges, there remains a small but vocal segment of the community that anticipates a potential breakout in the near term. Some analysts suggest that Pi could see a recovery above $0.36, the 20-day EMA level, which could open the path to $0.40 [3]. However, a move toward $1—nearly a 190% increase—would require a significant catalyst such as a mainnet launch or major exchange listing [5]. Without such developments, the market is expected to remain range-bound, with a bearish outlook dominating for the time being.

Source:

[1] Can Pi Network Fix Its Know Your Customer (KYC) Process? (https://beincrypto.com/pi-network-kyc-delays-credibility-concerns/)

[2] Pi Network Holders Fear Collapse in 2026: Here's Why (https://coinfomania.com/pi-network-holders-fear-collapse-2026/)

[3] Pi Price Holds Flat Despite Network's Move to Version 23 (https://beincrypto.com/pi-price-flat-despite-pi-network-version-23-upgrade/)

[4] Pi Network price wavers as another catalyst falters (https://crypto.news/pi-network-price-wavers-as-another-catalyst-falters/)

[5] Pi Coin Price Outlook: A Breakout Could Be Closer Than ... (https://coindoo.com/pi-coin-price-outlook-a-breakout-could-be-closer-than-we-think/)