Kik is one of the first venture backed startups to launch an ICO and provides chat functionalities for it’s users and has the mission of making chat experiences better. The company is seeking to move their tokens (that they’ve launched this year) to a new blockchain.
Kik seems to be considering the idea of possibly migrating its token network to a new blockchain.
They initially talked about this idea in their telegram tech channel where they were trying to gauge the feelings and thoughts of their “kin” token buyers on the different blockchain alternatives that could be a replacement for Ethereum.
An individual from their team stated “Since we first and foremost want the Kin ecosystem to scale to many participants and huge transaction volumes sooner rather than later, we realise that Ethereum might not be the right solution,” Beder said at the time.
The company has not made any final decisions on anything and is merely looking at potential ideas and seeing how the move would take place in a seamless manner. They are seeking to conduct their “due diligence” as they “explore all their options” and want to make sure that all Kin holders are able to retain their correct values.
This isn’t necessarily a move that is surprising as many blockchain startups have moved from one blockchain network to another to minimise issues and to prepare for future bandwidth. The projects have to account for scalability and they must weigh their options accordingly.
Many might wonder why Ethereum would not be good enough at this moment and what other factors prompt the possible move. The reasons may be related to costs and lack of synergy with the kin’s goals.
What’s KIK all about and what have they been up to?
According to their website, “Smartphones have become a part of us—always on, always within reach to connect us with our friends and our world.
Today, many teens and young adults are slowly moving away from social media and are looking towards chat as their primary source for communication and information. And where better to turn to for a fun, safe place to connect? Kik, of course!
Kik was founded in 2009 by a small but passionate group of University of Waterloo students. At the time, chat between Blackberry (yes, Blackberry), Android and iPhone users wasn’t possible, so we wanted to break down barriers and build a company that would allow users to chat with whoever, whenever.
Today, Kik is the best way to connect with friends, no matter where you meet them. But it’s also become so much more. As the only chat platform built especially for teens and as a clear leader in chatbots, Kik will become the central hub for everyday life for teens across the world as we grow.”
The launch of the KIK ICO earlier this year raised nearly a $100 million from participants over 117 countries, however since listing on exchanges, the price of the KIN tokens is lower than the ICO price!
Their token, Kin, “is an ERC20 token on the Ethereum blockchain that will be integrated into Kik as the primary transaction currency. By integrating Kin into Kik’s chat platform, which has millions of users, to drive mainstream consumer adoption, Kin has the potential to become the most adopted and used cryptocurrency in the world. Eventually, the Kin Rewards Engine, an innovative cryptoeconomic structure intended to promote the use of Kin as a common currency, administered by the Kin Foundation, will foster the creation and development of a worldwide, decentralized ecosystem of digital services.”