CryptoCurrencies are the hottest topic right now in the world. Now, one of the big industry players of the messaging world has entered the arena and has announced plans of launching its own token 'kin' via a ICO. The company feels that rejuvenating certain parts of the app can help increase it's monthly users which have been in decline. Its one of the highest financially backed companies venturing into ICO's. ICO's provide a great platform for developers who want to raise one for their venture, which would otherwise be hard through traditional means of fund-raising through VC firms and angel investors. The company is estimated to be worth over a billion dollars. By using this token system kik intends to monetize both its in-app features as well as provide a monetary incentive to the users.
Kik’s proposed token is going to be called Kin which is short for kinship which means family/community. The token is going to be created over Ethereum ERC20 token. Ethereum an ERC20 token. Despite, kik not releasing more details regarding token sale, but it does intend to sell 10% of the total supply. The company seeks to create an entire platform where like kik many such applications cold be created by third party developers using kin as their common token. Through this system, kik wants to avoid relying on advertising to fund its operations. The kin token will also be used to hire developers and would serve as their mode of payment.
The CEO of kik Livingston said:
“This creates a reward engine, a beautiful network effect, where the bigger the daily reward, the more services come into the ecosystem, which drives up the daily reward and more digital services. Very quickly this could become a very powerful economic force to bring developers to".
KIk has also launched a non-profit organization to manage kin and its operations and released a white paper detailing this plans.
This would mark the start of Large companies foraying their way into this side of the world.
They might already be working on using these token systems.