Cryptocurrency Research & Advisory Services
KIN: A Decentralized Ecosystem of Digital Services
The Investors' Debrief
KIN has the potential to be a seminal moment within the blockchain community, serving as one of the first “traditional” Silicon Valley companies to pivot their business model in a way that embraces tokenization. It is also one of the only companies to have proof of concept around tokens after a 2.5 year experiment with the digital currency Kin Points; which saw a peak of 2.3mn transaction per day (and an average of 300K transactions per day), despite not having any “real” value. With 15mn active users, it will become the most widely held cryptocurrency globally once KIN wallets are enacted on the application. Risks include the fact that the currency will began as a token that’s administered by the Kin Foundation before becoming fully decentralized based on smart contract technology. During that interim stage investors may face “key tenant” risk with Kik, the initial company on the KIN platform experiencing technical headwinds. On balance, we are constructive on risk and reward at current levels.
There is a distinct line to walk between tokens that are not an absolutely necessity, but augment the ecosystem of their respective companies, and projects that are unnecessary with tokens available purely for token sake. Over the past year, countless of ICOs launched that offer little to no utility value to token holders or product users. These tokens are not core to the underlying business, add a layer of complexity and unnecessary fees, and institute a middleman layer to the business structure. Luckily, KIN falls into the former category and could prove to be a watershed moment for the token economy as a once vibrant tech company realizes the need to reposition themselves in a tokenized world. KIN is a protocol developed by Kik, one of the leading message platf...