On the 12th of September 2017 the incorporation of the famous Instant Messenger Kik launched an Initial Coin Offering for their self-made crypto currency Kin. Around three months later, Kin has extremely declined in value and is still not listed on any exchange except for EtherDelta. Many investors are now asking themselves: what the hell happened to Kin?
The Token sale
When the creation of Kin was first announced, it seemed to be a really safe investment opportunity. The platform already had an unusually large community for a crypto currency, the team had years of experience and their goal to conquer the market of mobile apps appeared quite promising. But most importantly, Kin was the first crypto currency founded by a mainstream company. With over $125M collected during the whole sale procedure, Kin was a very hyped ICO and many crypto enthusiasts were looking forward to its development.
In comparison to the ICO price, Kin’s value shrunk over 50% in USD until today. This lead to a market capitalization of around $50M. Sadly, this is just the tip of the iceberg. In the same time frame, the price of Ether and Bitcoin rose heavily.
The main reason for this crash was definitely the fact, that kin is not listed on any exchange platform aside from EtherDelta. However, since EtherDelta is not very userfriendly and does not have a strong community, there is only a very small trading volume. This has driven many investors crazy, especially since obtaining a listing on great exchanges would be absolutely no problem for the Kin creators.
Right after the end of the token sale, it has become really quiet around Kin. As a result, a large number of investors lost their faith in Kin and dumped their tokens.
In the meantime, the Kin developing team was not sitting in a hot tub drinking Champagne and eating caviar. Although the one or other Reddit user supposed that. They actually started hosting some quite active Telegram channels, where they provide interested users with up to date information. Furthermore, they are managing accounts on Medium and Twitter. According to these sources, the team is working hard on a useful integration into the Kik messenger app. They even claim to start a test environment with real Kin tokens and Kik users in December 2017 called IPL V2. Another important development is the Kin mobile wallet, which should be available soon aswell.
The way things happened after the ICO pissed numerous investors extremely off. Kin lost a lot of reputation within the crypto world. Now the most important step for Kin is to recover from its sub ICO price in order to achieve new support from the crypto community. To reach this goal, listing on a major exchange is inevitable. A main reason for not listing the token could be their current challenges with the Ethereum Blockchain. These issues are so big that they are actually thinking of switching to another Blockchain.
Should I invest?
At the moment, Kin seems to be undervalued. Still the team has to struggle with many problems until everything is working fine. The only certain thing: If Kin is eventually working like it is supposed to be, if it is successfully integrated into the Kik messenger, if it is finally listed on major exchanges… Then it could be a magnificent investment opportunity. IF.
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Daytrader, investor & content creator