Messaging App Plans Digital Currency

Blockchain, FinTech, ICO News, Innovation, Investing | May 26, 2017 By:

Canadian mobile messaging app Kik is launching its own digital currency, Kin, that would enable customers to use a range of digital services.

The Kin token, which will be created as an ERC20 token on the ethereum blockchain, will exist not just within the Kik platform.  Other platforms and companies will also be able to adopt it.

Kik claims over 300 million active users registered worldwide. The company believes that its token can join the areas of communications, information, and commerce in a new way that will fuel how today’s generation and future ones will connect.

Kik Chief Marketing Officer Erin Clift said the system currency will democratize how users pay for experiences, products, and services. The digital currency could potentially make it easier for developers to create businesses outside of walled gardens like Facebook.

By early next year, Kik plans to open Kin up to third-party developers and will begin distributing $100,000 a day among the apps that drive the most Kin transactions. Ted Livingston, CEO of Kik, expects that number could rise rapidly depending on the valuation of Kin. Kik will also establish an arm’s-length governing body to oversee the currency’s development.

Livingston added that 10 percent of the token would be sold in a public sale to investors in an initial coin offerings (ICO).

The company also plans to gift a certain amount of Kin to each user. They’ll be able use the new currency to buy games, live video streams, and other digital products. Kik’s goal is to attract new merchants to sell on the platform, creating a snowball effect where Kin becomes more valuable and more sellers pile onto Kik, increasing its popularity.

“Kik believes that Kin can bring together a broad group of participants to create an open ecosystem of digital services that prioritizes consumer experience and choice,” said Livingston. “As a leader in the chat space, we want to bring a fair and sustainable model for digital services to the market and fuel an alternative ecosystem for communications, information, and commerce.”

“We believe cryptocurrency is the next important business model innovation in tech,” said Fred Wilson, partner at Union Square Ventures and Kik board member. “Kik will be the first mainstream application to integrate a cryptocurrency. This could be a watershed moment for the blockchain sector.”