Investors Deem Great Potential to Kik Cryptocurrency
The app Kik found a way to attract multiple investors through its new cryptocurrency plan, they believe that by monetizing its platform the value of the company will increase. They already raised a significant amount of $50 million to launch new kin token and their goal is to raise another extra$ 75 million. The plan is an important mark for the industry, by releasing its first initial coin offering (ICO) Kik is offering a new incentive model for users
In order to validate its potential, the company’s manager of special initiatives states that bot developers have already created over 180,000 bots. Those are automated chat robots and they range from entertainment to content creation. Bots allow users to engage in natural-language conversation with artificial intelligence. They are significant to gather the attention of young users which would be encouraged to be more involved with technology. An example of the bot was the design of the movie “Teenage Mutant Ninja Turtles” which created 147.5 million impressions and resulted in 60 messages exchanged
The company aims to create a cryptocurrency to increase the engagement of users, it will allow users to earn and spend money through the platform. They would be able to pay each other using kin currency and if the users generate a content that goes viral they can be paid in kin token. Parallel to this plan they also want to launch “Kin Rewards Engine” which will provide Kik users with rewards.
The investor Ryan Zurren, a former employer at Polychain Capital believes cryptocurrency applied to social media will be a breaking point for blockchain technology. He also states that, “Kin token is based on the ethereum blockchain and the same is not ready to handle the transaction Kik require.”
Therefore, the company still needs to work on technicalities for the platform to start working. Kik already have competent team with technical skills and an efficient management which will ease the process. The CEO of Polychain Capital, Dan Morehead, also highlights how Kik is the first company to “tokenize their business”. He sees potential in the plan as he states that Kik already has an experience with in-app virtual currency.
The only negative appeal to the proposal was the comparison to Facebook’s launch of Facebook Credits, which was not successful.