- Baron Chymaker explained that Pi is a coin and not a token.
- Pi Network was built in 2018, and even the pioneers may be yet to understand fully how the network works.
- PI can be mined or acquired from the pioneers who have already mined the coin.
Baron Chymaker, a supporter of Pi Network, has stated the difference between coins and tokens. According to Chymaker, coins refer to cryptos with their own blockchain network, while tokens describe cryptos that run on other blockchain networks.
Chymaker’s explanation is part of a Twitter thread where he educated his followers on the nature of the Pi Network. He noted that the information passed in the thread was relevant for both the pioneers and the non-pioneers of the network, the majority of whom are yet to understand how PI coin works.
In the thread, he compared PI to coins like BTC and ETH, since they all serve as native currencies to their primary blockchains. In contrast, he noted that cryptos like hi and Solana are tokens because they are built to run on secondary blockchains.
Chymaker attributed the mixup by users to the novelty of the Pi Network. According to him, PI is a cryptocurrency built for everyday people, and it started in 2018 but was launched officially in 2019. Hence, a pioneer may not necessarily mean an experienced crypto user but anyone who is currently mining PI.
Coins and tokens often overlap in terms of use case and functionality. One of the distinctive attributes of coins is their ability to act both as native tokens as well as gas or fuel payment tokens on their respective blockchains. Coins are created at the launch of blockchains from scratch, while tokens are created on top of existing blockchains. For every such token, there is an existing native crypto for the original blockchain.
According to Chymaker, there was never a plan for PI to be a classic token. From the beginning, it has always been designed to function as a coin, even after going live in December 2021. There was no initial coin offering (ICO) for PI. Hence, to own PI, it must be mined or acquired from the pioneers.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
