Pi Network News Today: KYB Strategy Aims to Block Speculative Crypto Traps

3 weeks ago 31

The post Pi Network News Today: KYB Strategy Aims to Block Speculative Crypto Traps appeared first on Coinpedia Fintech News

Pi Network is reshaping its token distribution strategy, opting for a compliance-driven model over the typical crypto playbook of mass exchange listings. The blockchain project is now directing Pi tokens through Know Your Business (KYB)-approved partners, including Banxa, TransFi, Onramp.Money, and Onramper, all of which operate across more than 100 countries with 170+ payment methods.

This shift aims to prioritize real-world adoption over speculative hype, positioning Pi as a blockchain built for regulated commerce rather than volatile trading floors.

Targeted Distribution Over Exchange Frenzy

Rather than letting market prices be set through unregulated trading, Pi Network’s new model sends tokens to verified businesses and individuals who have completed compliance checks, KYB for corporate entities, and KYC for individual users. The approach is designed to ensure tokens are used for in-app payments, services, and peer-to-peer transfers, rather than hoarded for speculation.

Pi Community supporter Dr. Altcoin described the change as a safeguard against manipulation and fraud. “Only KYB-verified businesses can operate Pi wallets on the Mainnet and engage in blockchain transactions,” he said, noting that this reduces the risk of whale-driven volatility and liquidity traps.

Compliance as a Competitive Advantage

Pi’s model bucks the trend of launching tokens directly onto centralized exchanges to drive initial interest. While Pi will still eventually appear on exchanges, the listings are intended mainly for liquidity rather than mass distribution. The project sees its approach as a template for how blockchains can grow while staying in line with global regulatory expectations.

Some in the community view this as a long-term strength rather than a constraint. Crypto user Ćhämpiôñ Lêxiś argued that by embedding KYB and KYC from the outset, Pi is building a fraud-resistant, accountable network that could thrive long after hype-driven tokens fade.

Market Response and Next Steps

The market appears to be reacting positively. Pi’s price rose 5% in the past 24 hours, while trading volume climbed 63% to $78 million. The uptick comes as Pi Network prepares for infrastructure upgrades tied to the Stellar Protocol 23 update.

At the same time, the Pi Core team is tackling misinformation head-on, urging the community to share fact-based updates as the project moves closer to broader mainnet integration.

If successful, Pi Network’s regulated, utility-first model could offer a blueprint for balancing blockchain scalability with mainstream business adoption, without falling into the speculative traps that have defined much of crypto’s past.