Pi Network Users Resort to Selling Accounts Amid Extended Lockup Restrictions

A notable trend has emerged among users of the Pi Network, known as Pioneers, as many begin to sell their entire accounts.

This development is primarily driven by the ongoing lockup periods that prevent users from trading or accessing their Pi coins (PI).

Account Sales Triggered by Lockup Restrictions

The Pi Network was originally introduced as a blockchain-based cryptocurrency that users could mine via a mobile application. It offered a decentralized mining experience without the necessity for specialized hardware, making it accessible to a wider audience.

However, the lockup mechanism intended to stabilize the supply and minimize inflation has resulted in unintended consequences. Recent data indicates that the total number of accounts within the Pi Network has reached 11.5 million.

Among these accounts, 1.1 million Pioneers have locked their PI for a duration of six months, and 1.6 million for a full year. Most strikingly, around 7.2 million accounts (62.6%) have committed their assets for three years, indicating that these coins will not be available for trading until late 2027 to early 2028.

“Many users have been mining that PI for about three years now, and while I initially thought it was too good to be true, it seems I might actually gain something from it. Ironically, most users locked up their PI for 3-5 years and now they want to sell,” a user shared on X (formerly Twitter).

This growing impatience has pushed some Pioneers to circumvent the lockup by selling their entire accounts, including passphrases, on platforms like X. A quick search for terms such as “sell locked Pi” reveals numerous offers where users are advertising their locked balances for immediate purchase.

“A friend is selling 2,136 Pi locked until 2027. Purchase includes the passphrase, providing full access to the wallet,” a user posted.

Another user expressed concerns about the situation, noting that many individuals with locked Pi are facing financial difficulties and desire to sell their coins.

Nevertheless, this practice poses significant risks as sharing passphrases with buyers could lead to scenarios where multiple individuals possess access to an account, heightening the risk of theft or fraud.

The lack of regulation in this area also exposes buyers to potential scams, as dishonest sellers could provide invalid accounts or fake passphrases. Furthermore, engaging in this practice could violate Pi Network's terms of service, potentially resulting in account bans or forfeiture of assets.

In addition to the struggles with lockup periods, the Pi Network has faced criticism from users who cannot migrate their tokens to the mainnet. Numerous Pioneers have reported unresolved technical issues that hinder balance transfers, leading to calls for an extension of the impending migration deadline.

Compounding these challenges, the Pi Coin has been experiencing a rough patch, dropping 22.2% of its value over the past week.

Recent reports highlight that investors are withdrawing their funds from the Pi Network, with bearish sentiment taking hold of the market. Currently, Pi Coin is trading at $1.3, reflecting a 0.7% decline in the last 24 hours.