Kin, the cryptocurrency launched by the popular Kik messaging platform, has been making headlines recently because of Kik's problems with the US Securities and Exchange Commission (SEC). In this article, we'll give you a summary of this problematic cryptocurrency and why Kik's legal case has implications for the entire crypto industry.
The goal of Kin is to provide a digital currency for the Kik community. Developers who create apps, games and stickers on Kik are rewarded no Kin directly by their users, rather than relying on ad revenue. Kin, in theory, gives Kik users more ways to connect and interact with each other.
In this article, we will discuss:
What is Kin?
Kin was first launched as an ERC20 token on blockchain Etheruem. Designed to be the main currency in the Kik ecosystem, users can purchase digital goods and services and app developers can generate revenue. Kin, short for kinship, is designed to strengthen bonds within the Kik community.
Who invented the family?
The Kin was developed by Kik, which was founded in 2009 by a group of graduates from the University of Waterloo, including current CEO Ted Livingston.
Did you know?
ICOs were typically launched by fledgling blockchain-focused startups, so when Kik – a company that was nearly 10 years old and valued at over $1 billion with over $120 million of traditional venture capital raised – decided to do it an ICO, the world of cryptography paid attention.
A Brief History of Kin
- December 2014 – Kik launches Kik Points, a sort of reward point system for Kik users, which ends in March 2017
- September 2017 – Kik Raises Nearly $100 Million on the Sale of Kin Tokens
- June 2019 - Kik sued by SEC for sale of Kin token
- September 2019 – Kik announces it will shut down its messaging app to focus on fighting the SEC lawsuit
- October 2019 – MediaLab Agrees to Purchase Kik Messenger and Preserve the Kin
What's so special about that?
The value of the Kin token has dropped dramatically since its ICO in 2017, but the Kin's legal issues with the SEC have renewed widespread interest in the token. The SEC claims that the ICO was a sale of unregistered bonds because investors could expect a profit, the company used it as a money-raising scheme, and there was nothing Kin users could expect to use the token at the time.
Kik claims to be fighting the SEC in court for the sake of the entire cryptographic world, so that the SEC will finally clarify and update its rules, which are still based on the 1940s Howey Test.
Did you know?
Kik pledged $5 million to fight the SEC in the Kin case, but the company also started the Defend Crypto Fund to raise money to help other blockchain organizations defend themselves against the SEC.
What else is different?
Kin claims to be one of the most widely used cryptocurrencies in the world, with over a million individual users spending or earning Kin. In response to the SEC, Kin also claims to have the fifth highest daily blockchain activity and more transactions than Ethereum and Bitcoin, supporting its defense that Kin is widely used and adopted, not a security.
How is the Kin produced?
In 2017, Kin was launched through an ICO that produced a total supply of 10 trillion Kin tokens on the Ethereum platform. However, they are now in the process of migrating all original Ethereum ERC-20 Kin tokens to the new Kin blockchain. The old Kin tokens that migrated would now be Kin Coins on the Kin blockchain.
How do you get the Kin?
By September 2019, Kin's total market capitalization had dropped to just $9,4 million, despite raising nearly $100 million in its ICO. As a result, the Kin is not very popular or widely available in major purses, but it can still be purchased or exchanged in some smaller purses.
What can you do with Kin?
In addition to being able to send, receive and exchange Kin, cryptocurrency is also integrated with various applications that are part of the Kik ecosystem. These apps allow users to gain Kin and reward others on the Kin with the most popular apps like MadLipz , Swelly , ThisThat , PauseFor , Kinit and Perfect365.
The future
Right now, Kik's future looks better after a hard-hitting 2019. The impact of the SEC's case against its former owners is yet to be defined.