Huobi Makes Profits from Pi IOU, But Now Official Listing Hampers Due to KYB Verification

Huobi, one of the longest-standing names in the cryptocurrency exchange space, is currently under the spotlight for a curious paradox: while it has generated significant trading volume—and likely millions in fees—from offering Pi IOU trading pairs, the exchange now finds itself unable to list the official Pi coin. The roadblock? A firm stance from Pi Network’s founder, Dr. Nicolas Kokkalis, who insists on strict KYB (Know Your Business) verification and a formal application process before any centralized exchange (CEX) can offer legitimate Pi tokens to the public.

This clash between an established exchange and a rapidly growing blockchain project has laid bare a deeper philosophical divide in the crypto industry. It raises questions about decentralization, control, and the responsibilities of both developers and market operators in a largely unregulated space.

The Rise of Pi IOUs: Profitable but Controversial

Pi IOUs—essentially placeholders for the eventual real Pi coin—have been traded on Huobi and several other platforms for over a year. These tokens are not officially backed by the Pi Core Team and carry no guarantees of conversion to real Pi when the mainnet is fully opened. Nonetheless, they’ve attracted speculative interest, especially from users outside the official Pi Network ecosystem who saw potential for short-term gains.

Huobi, by enabling these trades, tapped into a wave of anticipation and demand surrounding the project. The exchange profited from trading fees while offering disclaimers about the unofficial nature of the IOU assets. But for many within the Pi community, this move was viewed as opportunistic and potentially misleading.

“It’s a textbook case of putting profit before principle,” says a blockchain ethics researcher at the University of London. “When you list a token that hasn’t even launched, and especially without the endorsement of its creators, it undermines user trust.”

A New Type of Blockchain Governance

Pi Network, in contrast to many other blockchain projects, has taken a cautious and methodical approach to launching its cryptocurrency. Since its inception in 2019, the team has focused on building a grassroots user base, known as “Pioneers,” and encouraging real-world utility before opening up trading to the broader public.

Dr. Nicolas Kokkalis, a Stanford PhD and the visionary behind the project, has repeatedly emphasized that listing on exchanges is not a race but a responsibility. According to recent official communications, Pi Network will only authorize listings on exchanges that complete a KYB process, prove their commitment to regulatory compliance, and demonstrate alignment with the network’s long-term goals.

This policy has created a barrier that even major CEXs like Huobi cannot bypass.

“Everyone wants a piece of Pi, but only those willing to play by the rules will get it,” noted a Pi Network community lead.

Huobi’s Dilemma: Reputation vs. Compliance

Huobi’s predicament is emblematic of the challenges facing legacy crypto exchanges in 2025. In an era where projects are increasingly emphasizing control over their ecosystems, exchanges that once dictated the terms of listings are finding themselves forced to adapt.

To date, Huobi has not publicly responded to Pi Network’s KYB requirements. However, several industry insiders suggest the exchange has made multiple informal attempts to contact the Pi Core Team, signaling a strong desire to be among the first to offer real Pi trading when the Open Mainnet launches.

“It’s an unusual reversal of roles,” says a digital assets consultant based in Singapore. “Historically, projects courted exchanges. Now, with Pi’s massive user base and brand recognition, it’s the exchanges doing the courting.”

A Test Case for the Future of Exchange Listings

This dynamic represents a broader transformation in how new coins enter the market. With over 60 million users, Pi Network has the kind of momentum that usually belongs to well-established tokens. Yet instead of capitalizing on that by rushing to exchanges, the Core Team is taking a high-integrity approach that prioritizes utility, user protection, and gradual decentralization.

The situation with Huobi is being closely watched across the crypto industry. If Pi Network succeeds in building a functional economy and launches on its own terms, it could become a blueprint for how future blockchain projects manage token launches—particularly in the face of growing regulatory pressure worldwide.

At the same time, Huobi’s experience may serve as a cautionary tale about the risks of listing unapproved speculative assets. Regulatory agencies in both the United States and Asia have begun scrutinizing the sale of IOU tokens, and future guidelines may curtail this practice altogether.

What This Means for Pi Pioneers

For the millions of users who have been mining Pi through their smartphones for years, this cautious approach is a sign of credibility, not delay. The Core Team has emphasized that utility must precede liquidity, and that Pi should not be reduced to a purely speculative asset.

Pi’s Open Mainnet is expected to launch within the next few months, once certain ecosystem conditions—such as KYC completions, app utility development, and migration milestones—are fully met. Once launched, the Core Team is expected to authorize selected exchanges that have complied with all requirements.

Until then, Pioneers are being advised to avoid unofficial tokens and to stay engaged with verified information via the Pi Network’s official channels.

Conclusion: Power Shift in the Crypto Industry

The clash between Huobi and Pi Network may ultimately be remembered as more than just a dispute over token listing. It reflects a broader shift in the power dynamics of the blockchain world. As new projects with massive followings choose principles over profit, centralized exchanges may have to rethink their strategies, adjusting to a future where blockchain communities—not financial platforms—set the agenda.

Only time will tell whether Huobi will secure a listing for the real Pi coin. But one thing is clear: the rules of the game are changing.

Huobi made a fortune selling Pi IOUs, but now they can't list the real Pi because Kokalis is insisting on KYB verification and application. How can a well-established CEX be begging to list a coin that's not even finished with development yet? #PiNetwork #Crypto #CEX pic.twitter.com/kZgAjJrm9U

— Pi Network Team (@PNCoreTeam) April 4, 2025

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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