ICO or NO? Episode 11 KIN

6 min read

KIK Messenger is having an ICO! Watch as Jeremy breaks down one of the first established apps to use an ICO in order to raise funds in Episode 11 of ICO or NO.

Is this the first signs of mainstream companies turning to the ICO model for fundraising? Or will the KIN ICO end up scaring off other established applications from adapting to blockchain technology? We’ll assess the KIN ICO using the same four questions we use to evaluate every ICO. So sit back, let us do the heavy lifting in order to get you up to date on KIK messenger’s KIN ICO.

What is the KIN ICO & what problem does the project hope to solve?

So this is kind of a unique situation for me… This is usually the part where I introduce a fairly new project that not a lot of people are aware of. Obviously, today is a little bit different.

Many people are already aware of KIK Messenger, an application that already has over 100 million downloads on Android alone. KIK has already proven itself to be a reliable messaging app: the infrastructure exists and not only do they have a usable product, they have a tested product that has been around for a few years now.

If you aren’t familiar with KIK, don’t worry. It’s really simple to explain. KIK is a messaging app that allows you to send messages via WiFi and also supports video chat. The startup, which is based in Canada, was founded in 2009, and it has raised over $120 million from traditional venture capital firms.

It’s great for group chats, and many communities use the app to keep their members up-to-date and informed. Basically KIK is there to make communication a little bit easier, allowing for coordination that could benefit any group from a small family to a board of a corporation.

So you may be asking yourself:

“Hey, if KIK already has an established and well funded company, why would they be conducting an Initial Coin Offering?”

KIK has identified advertising as part of their user experience that they would like to reform. KIK plans to use the ICO to develop a monetization system for its messaging app which will allow app developers to be paid based on attention, rather than relying on advertising or in-app commerce. Similar projects such as the Brave Browser are trying to do the same thing.

What are the marketing conditions facing the project?

KIK already has an established user base. The startup claims over 300 million registered users, and 15 million monthly users. Establishing itself as a viable project isn’t necessary, since that has already been done. While most projects launch a cryptocurrency and build a project with that funding, KIK will have the opposite challenge of incorporating a cryptocurrency into an existing platform.

And that’s the real question we should be asking here. Will KIK be able to seamlessly integrate a cryptocurrency into their already successful messaging platform?

There are several other projects that are looking to secure messaging via the blockchain. While this project does not completely move KIK’s existing platforms to the blockchain, incorporating cryptocurrency may be new way of raising funds, giving them a leg up on other messenger dApps.

Plus, they already have an advantage in the market because people know them. Look at all their downloads. That recognition lends credibility.

Who is the team behind the KIN ICO?

This is another question that is easy to answer because KIK has an established and tested leadership structure. Since the company has fairly high public awareness, the heads of this application already have well established resumes in the tech and business community.

Normally I have to dig around the team members LinkedIn profiles, lists of past projects, any issues with past projects, in order to let you know who you are investing in. There’s no digging for past successes needed with KIK. The startup has an established history, with a proven leadership structure. You don’t simply get 100 million downloads by chance. People like the KIK platform, and by association have shown explicit confidence in the leaders of the project.

Of course, you always have to be aware of any red flags whenever you’re investing, but putting your money behind a company like KIK gives me some confidence. Of course the platform will face challenges in incorporating the KIN coin into its system, but it will likely be much easier for an established platform to make this move, compared to a company that is just getting its legs under itself.

What is the design of the ICO?

KIK has already raised $50 million in traditional investing rounds, and looks to raise another $75 million through the ICO.

The ICO will start on September 12th, 2017. However you have to register for the ICO by the 9th in order to be whitelisted for the token sale.

There is a cap on how much KIN token you can buy. The total supply will be divided evenly by the number of whitelisted users, allowing all pre-registered to have a shot at buying the cryptocurrency.

The only thing that gives me pause is the amount of tokens being released in the sale is relatively small compared to the total supply. This might make it hard for the currency to take off, as coins with higher supply are harder to move the price. With such a small amount of tokens coming out, as compared with the total supply, it’s kind of hard to argue that the cryptocurrency isn’t pretty centralized still.

ICO or NO covers some of the hottest tokens sales from the coolest projects! Jeremy, though his patented Four Question System*, dissects each project to help you better understand the token sale! Check out more of our ICO or NO episodes here, and subscribe to our YouTube channel for future ones!

*Patent Maybe Pending