Nearly half of Pi Network nodes are in Vietnam, raising centralization and regulatory concerns for this global crypto project - IcoHolder.

The Pi Network, designed as a global and decentralized cryptocurrency project aiming to empower users worldwide, now faces a significant challenge: nearly half of its network nodes are concentrated in Vietnam. Recent data reveals that Vietnam hosts 154 out of 319 global Pi nodes, accounting for over 48% of the network, with 33 of the 76 active nodes located there. This heavy geographic concentration raises concerns about the network’s fairness and long-term resilience, as any regulatory or technical disruptions in Vietnam could jeopardize the entire project.

Compounding the issue are Vietnam’s strict cryptocurrency laws, which do not recognize Pi Coin as legal tender. The government warns that using Pi for transactions may result in substantial fines or even criminal charges. Moreover, proposed regulations could restrict crypto activities to licensed institutions only, potentially disrupting the operations of many local Pi miners and node operators.

Centralization issues extend beyond geography. The Pi Foundation controls over 60% of the total Pi Coins in circulation, holding more than 60.7 billion out of 100 billion tokens. The network’s validation process is also concentrated, with only two validator nodes, both owned by the core team, limiting decentralization and user influence.

Concerns from the community are growing. Users on platforms like Reddit argue that as long as the core team holds a large share of coins, true decentralization remains out of reach. Authorities in Hanoi have cautioned against the hype surrounding Pi, highlighting unrealistic promises and warning that many investors underestimate the risks.

For Pi Network to fulfill its vision as a truly decentralized, people-powered cryptocurrency, it must urgently address the overreliance on a single country and the central control held by its founding team. Without these changes, the project risks drifting away from the ideals on which it was founded.