Kin is a cryptocurrency that will be used within the Kik messaging app, which currently has 15 million active daily users. This project is considered to be the most viable project of 2018, because of the Kik’s tangible nature and a large user base. It has a low-risk and high-hype status which makes it worthy to invest in.
Kik and Kin
Launched in 2009, Kik is the most popular messaging platform in the world (ranked at #7). It is the first company to have completed an ICO (Initial Coin Offering) on Ethereum. It raised $98 million in its token sale last year in 2017. The company has been valued at $1 billion.
Kik included Kin cryptocurrency in their platform as a part to integrate blockchain with social media. This is a revolutionizing step on their part. The front-page of its website states its vision to bring a broad group of participants together “to create an open ecosystem of tools for digital communication and commerce that prioritises consumer experience”.
Kin for Users and Developers
Kik aims to use Kin tokens as an incentive for its users and developers. They will be offered rewards on the app. Developers can earn for creating content and receiving Kin coins by others. Users can pay others for providing a live stream. Coins will also be offered for doing small tasks such as watching ads, and so forth.
The majority of Kin’s rewards are dedicated to content developers as the financial incentive. Every day, the Kin’s algorithm will reflect each service provider’s contribution. The Kin Rewards Engine will compensate a set amount of Kin to the developers. This is to ensure that they are compensated without relying on advertisements (unlike on Youtube, etc). As more users are added to the app, Kin will become more valuable. So daily rewards will also increase for the users.
The Kik team will use these coins to drive forth the network. And these coins will actually have monetary value, which users can use to purchase real merchandise. Its creators said, “We view the successful integration of kin to be two-sided marketplaces where users can earn and spend.” With its large market and high hype, the coin is likely to be successful. This makes it a good investment opportunity.
Another feature is that Kin would provide mass exposure of cryptocurrency to everyday people. It especially brings blockchain technology to youth (young social media users) for the first time. This would make blockchain more renowned, common and an everyday phenomenon. This will help the capitalization of Kik.
Kik Points Experiment
Some crypto enthusiasts have argued that Kik’s Kin is more of an experiment with high stakes involved. However, Kin has been carefully launched after a successful experiment of Kik points for 2.5 years (from mid-2014 to end 2016).
The company introduced it for a more advanced solution, which goes beyond advertising-based use case on social media platforms. In its experiment, the users completed 253 million offers and spent points earned on the purchase of 74 million worth of goods. There were around 300,000 transactions per day, which reached to 2.6 million transactions in the end. In fact, the average transactions on Kik points experiment were more than Bitcoin transactions.
This proves that Kik’s Kin coin is very likely to be successful. Integrating twenty-first century’s most innovative techs – social media and blockchain are likely to increase its returns.
It has investments from Polychain Capital, Pantera Capital and Blockchain Capital. These three companies are major in blockchain listing, and connections with large exchanges are to list Kin on major exchanges.
Kin Foundation is additionally established by Kik to oversee fairness and democracy in the ecosystem. The foundation will be an independent and non-profit unit, which will operate on Kin Reward Engine and manage the key operational aspects of the community.
Like other blockchain networks, Kik aims for a decentralized community. The Kin foundation will ensure that the economy is not monopolized by a giant company or a few individuals. This is to ensure that the app remains fair for its users and developers.
Movement from Ethereum to Stellar
One of the problems with Kin coin is scaling problem on Ethereum, which arises due to large user base on Kik. Kik is currently using Ethereum as its blockchain network. It has 300 million downloads with 15 million daily users. Even if 5-10% of Kin coin users will carry out transactions on Ethereum, it would mean 0.75 to 1.5 million daily transactions. Whereas Ethereum can roughly handle only 10 thousand users from Kik. Because of Ethereum’s scalable issue, more users would jam and slow down the blockchain. But Kik aims to carry out “fast, reliable and inexpensive transactions”.
Therefore, the company has announced its plans to shift to Stellar. This has also created a lot of anticipation among its users. Transfer of Kin to Stellar would list the token on major exchanges.
Therefore, with Kik’s large market value, wide user base, the success of Kik point experiment and a possibility to move onto Stellar blockchain, the future for Kin coin seems bright. With the value per coin low currently, it seems like the right time for the investment to make profits in the future.