Will Pi Network KYB Process for Pi Token Distribution Curb Speculative Trading?

Pi Network is now focusing on strengthening its Know Your Business (KYB) approvals in a strategic shift to boost its Pi token distribution model. The recent KYB approval for fiat on-ramp providers like Banxa, TransFi Onramp.Money, and Onramper, hint at a dual distribution framework that prioritizes compliance, accessibility, and actual user engagement.  The goal is to prioritize the real-world utility of the Pi ecosystem and curb speculative trading.

Pi Network Focuses on KYB-Approved On Ramps

The Pi Core team is taking a shift in the Pi token distribution strategy. Instead of releasing large volumes of tokens directly to centralized exchanges (CEXs), they are distributing them to the wallets of the KYB-approved partners. Popular community member Dr. Altcoin noted that this token distribution method helps to bypass speculative risks. The focus on the dual distribution framework, KYB for businesses and KYC for users, comes as the Pi Core team reminds users of completing KYC for mainnet migration.

The current KYB platforms and on-ramp platforms like Banxa, TransFi Onramp.Money, and Onramper, offer services in more than 100 countries while supporting over 170 payment methods. This would provide broader access for Pi tokens, while maintaining regulatory oversight.

Dr. Altcoin believes that this model would allow Pi Network to expand globally and reduce exposure to price volatility, speculative manipulation, and liquidity-driven whale trading. This approach is different from traditional crypto launches that flood tokens to exchanges. Instead, Pi’s model channels supply toward users and businesses intending to use Pi for ecosystem purposes. This includes the use of Pi tokens for in-app payments, peer-to-peer transactions, and services. Speaking on the development, Dr. Altcoin noted:

“By requiring KYB (Know Your Business), Pi ensures that only verified and legitimate businesses can participate in its blockchain operations, creating trust and protecting Pioneers from scams and fraudulent actors. Only KYB verified businesses can operate Pi Wallets on the Mainnet and engage in blockchain transactions”.

Central Exchanges (CEXs) Won’t Be Central to Pi Token Distribution

While CEX listings will still play a role in providing liquidity, they are complementary, not central, to Pi’s distribution strategy. By focusing on trust, compliance, and real-world utility, Pi Network is aligning itself as a potential model for how digital currencies can scale in a regulated environment.

Dr. Altcoin noted that its dual distribution model could serve as a blueprint for maturing crypto projects that seek to bridge blockchain infrastructure with mainstream commerce. The Pi Network infrastructure is set to get a major upgrade along with the Stellar Protocol 23 upgrade.

Moreover, the Pi Core team is stepping up measures to address misinformation. In the latest email to community members, the team has broadcast an open call to educate the broader public on fact-based content.

Amid the broader crypto market recovery, Pi Coin price has bounced back 5% today. The daily trading volume is up 63% to $78 million, showing bullish trader sentiment.