The new Kik messaging app is generating quite the buzz across social media platforms. That is only normal, as instant messaging apps have become incredibly popular these past few years. Kik will also create its own native digital currency, which is called Kin. This particular concept has piqued a lot of people’s interest, thus it is a good time for us to see what Kin is all about.
The Kin Digital Currency is Quite Interesting
It is evident what Kik is trying to do. Social messaging has become a way of life, especially in China. As a result, the Kik team feels their new messenger platform needs its own digital currency, which will be called Kin. The ultimate goal is to emulate China’s messaging apps and provide built-in payment services using this new digital currency. It is certainly possible other apps will follow a similar path.
It is the first time we will see a major instant messaging platform issue its own digital currency, though. Most other apps with built-in payments rely on credit cards or mobile credit payments to move funds from user A to user B. Kik is definitely trying to do things very differently. The Kin currency can be used to pay users for their loyalty, and eventually power a complete digital economy. Proprietary currencies often lose traction after a while though, as not everyone wants to be tied to just one ecosystem.
Not too many details are known about the Kin currency so far. According to CNBC, Kin will be issued in the form of tokens, which are used on the Ethereum blockchain. This is not entirely surprising as the blockchain allows anyone to issue their token with relative ease. The unknown factor is how many tokens will be created in the process. Moreover, it is impossible to tell whether Kin will have a fixed supply. This may not matter to most mainstream consumers, but it is something to take into account when considering these tokens will have some value attached to them.
Additionally, there will be a public sale of the Kin token, which is somewhat of a norm. It is evident a cryptocurrency ICO would be on the horizon for Kik, as they want to raise as much money as possible. All of this is outlined in the Kin white paper, albeit it does not include an official launch date for this token sale. Moreover, it does appear Kin will an inflationary currency, which is not necessarily a good thing.
Moreover, issuing these tokens on the Ethereum blockchain could prove to be a wrong decision in the long run. More specifically, the Ethereum network suffers from congestion once a high amount of transactions take place. If Kik is to be adopted by millions of users around the world who want to spend Kin tokens, it will be interesting to see if the project will run into some form of trouble. A crippled Ethereum blockchain would not do this new digital currency any favors.
For the time being, the Kin currency is subject to a lot of speculation. Very few important details are public knowledge right now, and the white paper isn’t helping much either. Without knowing how many tokens will be issued or what price they will be sold for, it is impossible to tell what the future may hold. It is quite an intriguing project, although it remains to be seen if there is a real need for a proprietary currency in the first place.
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