The Kin Ecosystem was initially developed by the Canadian firm, Kik Interactive Inc. In 2011, it built the famous Kik messenger which had over 300 million active users by 2016.
The Fin Foundation initiated by KIK seeks to build an ‘open and decentralized ecosystem of apps,’ rewarding the contributors of the ecosystem. The App developers can integrate the Kin SDK into their platform to participate in the ecosystem.
Since Kik Interactive along its messenger was backing the blockchain development, the authorities claim that the company is in a position to use the cryptocurrency for the growth and liquidity of Kik.
Kin cryptocurrency is the incentive in the Kin Ecosystem between app developers, content creators and customers. The KIN token ICO was conducted in September 2017.
Apart from building a blockchain based system, the Kin Rewards Engine (KRE) is designed to reward the developers in proportion to the daily active spenders of KIN on their apps and the contribution to the P2P pool.
The Blockchain was originally designed on Ethereum [ETH] as an ERC-20 tokens. Lately, the Kin Blockchain was developed and the tokens are eligible for migration from ERC-20 to KIN until June 2020.
SEC has sued Kik Interactive Inc. for violating the 1933 securities law by conducting the Kin ICO. The SEC Vs. Kin Token is one of the most iconic cryptocurrency cases because its viability reaches to all past and future ICOs and SAFT tokens.
Furthermore, the Kin Token ICO (raised $100 million) was conducted via two methods, to accredited investors (SAFT) and a public sale. This was done to ensure the maximum outcome of the fundraiser and to avoid securities law.
According to the SEC, Kik’s costs have always far outpaced its revenues, and the company has never been profitable. The cryptocurrency project was expected to revive the firms’ revenue.
Currently, both parties are seeking summary judgement from the court. While the SEC is confident of an undisputed securities claim, Kik is relying on making a case from the technicalities of the sale.
Kin’s supply is one of the largest in the market with a total plan of 10 trillion tokens. By June 2020, 1.5 trillion have been released in the market. The total market capitalization of KIN has been below $10 million for a greater part of the past year.
The massive downfall of the cryptocurrency began as the SEC sued KIK for an illegal sale of security tokens in June 2019. It dropped over 90% of the price during Q1 in 2019. The price has been consistently low as the court case with the SEC is still unresolved, and it looks like the SEC has an upper hand as well.
Eventually, Kik shut-down the messenger completely due to massive legal fees and failure of the app. Since, it is primarily a payment focused currency, to attain ‘Store of Value’ properties, the price must oscillate between bear and bull cycle round a pivotal point; where the peak and trough stabilizes with time.
The weekly chart illustrates a long-term downfall in prices, which have now reached consolidation levels since the last quarter of 2019. The decay in price has been significant and there is little hope of revival to the highs.
Nevertheless, crypto bull-bear markets usually follow a 4-year cycle. Moreover, Kin has not witnessed a significant bull rally in the markets yet. Given, the legal dispute is resolved, the investors can expect upside over $0.000025.
The first monthly Kin Foundation transparency report was published in May 2020. The link to the report can be found here. The monthly report introduces three new metrics to depict the status of the chain - Kin spent per day, B/I ratio and Net Dollars Bought (NDB). The total market capitalization of Kin is currently around $8.7 million. It is ranked way down at 400 with respect to market capitalization. Due to the shut-down of the Kik messenger, legal dispute the prospects of growth of the cryptocurrency is low. The number of twitter followers of Kik saw a massive decline in 2019. .
Currently, the ‘Kin Ecosystem’ only has little over 25k followers. There are over 57 monthly active apps ranging from social media, communications, lifestyle, education and gaming apps.
Last but not least, the recent judgement against Telegrams’ and the end of the TON project does not set a positive precedence for the Kin Ecosystem. Tanner Philp, head of Corporate Development and Operations at Kik told the media after Telegram’s demise.
“The SEC has continued to regulate by enforcement rather than through rational rulemaking, and as we've seen, this threatens the crypto industry globally.”
The court can order a return of the entire amount back to the investors, or impose a fine for the ICO to be paid to the SEC. In other cases like EOS, the SEC just imposed a fine on the developing firm.
You can buy Kin Tokens at HitBTC, BitForex, CoinTiger etc.
Even if the SEC finds the ICO as illegal, there are reasons to believe that the token will continue to survive. Nevertheless, if the judge orders a return of the initial ICO amount to the investors, then the management might decide to shut-down the project. Nevertheless, we can also expect open-source development on the blockchain.
The network is centered in a very key industry. People around the world are increasingly looking for ways to tap into data relating to locations. Cars will continuously transform to make the driver a better experience. The adoption of XYO is key to its price growth. Therefore, XYO is likely to grow in value in the future.
Kin price in KIN/USD is exchanging hands at $0.00000567 at the time of writing. The token has a market cap of $244 million and features a 24-hour trading volume of $18,675.
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