Popular Canadian messaging app officially launching its own digital currency with announcements on Slack and Reddit. On 22 August, the company finally announced “Kin”, its version of cryptocurrency was ready for open registration through their website.
Kin coin would be issued and build on Ethereum ERC20 smart contract protocol.
Kin ICO mark for the first time a high profile company outside of the crypto sphere to launch crypto-asset. The token that transmits on open source, decentralized blockchain. With Kin token, Kik hopes every user would earn and spend over the app.
Kin will be the unit of account for all economic transactions within the Kin Ecosystem, and it will serve as the basis of interoperability with other digital services. In character, Kin is a pure cryptocurrency of fixed supply. It is fractionally divisible and long-term noninflationary.
The Kin could add value for everyone with the app, the rewards could enhance users experiences and increased further proactive engagement through activities such as chat, social media, payments. hosting popular group chats or developing bots.
The app commonly known as Kik is a free instant messaging mobile app available on iOS and Android. Although it is not the biggest chatting app, Kik is popular among millennials and a well-known name as well as one of the most downloaded mobile apps in Apple Site and Play Store. Kik has around 300 million registered users, and is used by 40% of the teenagers in the US.
Kin capped the maximum public sale at $75 million or 10% out of the total token supply for the ICO. This tally the total valuation of the currency at $750 million. These also imply the Kin token would debut as 15th most valuable cryptocurrency in the overall ranking, based on the latest coinmarketcap data.
Only a small portion of the Kin supply will become liquid in the near future, as most of the Kin supply is reserved for the Kin Rewards Engine. Like other cryptocurrencies, units of Kin are fungible and transferable, and they will be expected to trade on cryptocurrency exchanges.
Kin also would be the most used cryptocurrency in the world with over 300 million of Kik users ready to wager on the token.
Based on its whitepaper, it predicts a daily payout of $220,000, 100% increased in the second year and over $1 million in the third year. The marketcap of Kin is forecasted to achieved $1 billion and reached $5 billion in the third year.
Kik was last valued at US$1 billion in 2015 following an investment by China’s Tencent Holdings Ltd.
UPDATES: Kik had increased the max cap by 50 million, now they are aiming to collect $`25 million from Kin ICO.
Kik Had ‘Kik Points’
Kik was launched October 2010, and instant hit on Blackberry. The kik app was known for its innovative ideas on its messaging platform. It was the first to awards point “Kik points” (now defunct) for its users for chatting with friends. Users perform tasks such as watching ads and playing branded games to earn points they can exchange for digital goods like stickers and smilies.
Kin ICO Crunching Facts and Numbers
Kiki total user base stood at 300 million with 12 million monthly active users. It currently ranked probably in between 8-12th in the mobile messaging app. Is launching of Kin going to enhance its users and expand its market share?
The ICO could increase adoption from the cryptocurrency crowd. There are over 3 million cryptocurrency users based on a research paper by the University of Cambridge this year.
Kik users will be able to earn and use Kin within the app just as they did with Kik points, but they’ll also be able to trade it in for cash.
By outside the cryptocurrency community, the introduction of cryptocurrency could bring little impact. The understanding and adoption of digital currency remain low around the world.
Kik will attempt to attract new users by convincing more developers and designers to invent new features for its platform. To do this, Kik will create a new cryptocurrency called Kin. A large amount of Kin will be held aside to be paid out automatically to developers who create Kik-based products that people really use.
Kik plans to mint a total of 10 trillion Kin tokens, selling a trillion to the public, holding on to 3 trillion for itself, and setting aside 6 trillion for a nonprofit that will manage a rewards program for loyal users.
With such a large number of coins that majority would inject into the ecosystem, there could possibly hinder the substantial increment of its valuation in the longer term. In the short term, we could still see a big jump in the Kin price. But in the long run, if the adoption progress slows, reality kicks in.
Kin opted to build on Ehtereum smart contract protocol was viewed as a positive and easy choice.
But, this is actually a risky move in the long run. Based on its previous ‘Kik points’ The points traded hands an average of 300,000 times per day, more than three times the average number of transactions per month on Bitcoin’s network during that time. The capacity and efficiency of Ethereum network scalability are still questionable. Is Ethereum able handle with such busy transaction?
Cryptocurrency is certainly looking to benefit from such big name into the digital currency. Kin success would propel further mainstream companies joining in cryptomarket. And mass adoption is just matter of time.
Please take note, this is my personal view, and should be serve as financial and investment advice. Please do yourown due delligent before making investment decision.
How to join in Kin ICO?
All potential participants in the sale need to pre-register no later than three days before the sale. Non-U.S. participants and people who plan to put in more than $100,000 will have to provide a scan of their photo ID and selfie. U.S. citizens investing less will still have to provide basic contact information and evidence of a government issued ID. All of this will be shared a third-party verifier who will cover Kik’s “know your customer” obligations under U.S. anti-money laundering laws.
Registrations should be verified in three days.
Investment can only be made via an Ethereum wallet. Investors will have to provide one valid Ethereum wallet address and only that wallet can be used to make investments. Investors will have to estimate how much they plan to invest, but they won’t be held to these amounts.
If you need to buy Ethereum, check out Changelly. It is one of the easiest and fastest way to acquire ETH, the token symbol for Ethereum.
* you must get your Ethereum wallet beforehand, to store your ETH coin.
Images via Kin, Pixel Bay