Kik Might Move Its ICO Tokens to a New Blockchain

Kik, a company that was one of the first to use an initial coin offering (ICO) on ethereum, is considering whether it might migrate its token network to a new blockchain
16 November 2017   1009

Despite the role of Kik's role in in popularizing the ICO concept, this move is not unique for blockchain startups. For example, in the past, startups token networks on top of the bitcoin network have migrated to other alternatives, most often ethereum.

The social messaging platform, which raised $98 million in its token sale earlier this year, first announced subject late last month on the Kin Foundation's Telegram tech channel. There, Kik's head of blockchain engineering and security, Leonid Beder, said that the firm was interested in "kin" token buyers' views on possible alternative blockchains that could replace ethereum.

One of the most important reasons for the exploration are the costs inherent in using the ethereum platform, as well as Kik's specific goals for its token.

Early applications for the kin token are likely to monetize what people already do on Kik for free. For example, artists currently create stickers that users can send with messages on the Kik platform. With kin, artists might then be able to exchange stickers for value.

When ethereum developers have discussed technical solutions that execute transactions off-chain to scale the protocol and lower transactions fees, those have yet to go live.

The kin ICO attracted 10,026 people who invested 168,732 ether in the sale.

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CFTC to Issue ICO Investor Advisory

Before buying coins, you need to thoroughly study their nature and understand what factors can affect their price, CFTC advises 
17 July 2018   113

The US Commodity Futures Trading Commission (CFTC) published a document with recommendations for potential investors in ICO projects and token buyers. This is reported by Coindesk.

The agency's document says that before buying coins, you need to thoroughly study their nature and understand what factors can affect their price.

Also, a potential buyer should remember that, depending on the structuring, some tokens can be derivatives, commodities or securities.

Buying digital coins or tokens only because you expect to sell them at a higher price later is the definition of speculation and carries considerable risk, regardless of how good a white paper, application or business plan sounds. Unfortunately, fraud is another significant risk to consider. Your best protection is to thoroughly research digital coins or tokens and exercise caution. 
 

CFTC ICO Advisory

The guide also states that before investing in the ICO, it is necessary to find information about the organizers of the project, and also to find out whether they themselves participate in their  ICO.

Representatives of the agency also refer to the study, according to which more than 50% of ICO start-ups ceased to exist during the first four months after the end of the token.