How KIN works and where to buy it
Kik is one of the world’s largest chat and social media platforms, Kin is the name of its affiliated cryptocurrency foundation and KIN is the token itself.
The coin was released following a successful ICO which raised over $100 million and its goal is to be a staple of the user economy.
By offering a token with a promise of inherent usefulness and value, Kik and Kin aim to facilitate the creation of a new monetisation system and a new social coin. It's considered to be a strength that KIN is built into an established existing social media platform and has a multi-million strong existing user base that could start using the currency almost immediately.
Where to buy KIN in Australia
KIN can only be purchased with Ether, and it is currently only available on a few exchanges, including the following:
- Ether Delta
- Bancor Network
The total KIN supply limit is 10 trillion coins. However, it's unlikely that the full 10 trillion will ever hit the market.
- 1 trillion - Distributed to users in the ICO.
- 3 trillion - Distributed to Kik, in equal quarterly instalments over 2.5 years (10 quarters).
- 6 trillion - Held by a smart contract that releases 20% of the remainder each year for perpetuity.
There are indications that you can expect fairly drastic inflation over the first few years, after which it will slow dramatically and eventually become practically non-existent.
- Starting supply: 1 trillion
- Circulating supply at the start of the second year: 3.4 trillion
- Circulating supply at the start of the third year: 5.56 trillion
- Circulating supply at the start of the fourth year: 6.3412 trillion
- Circulating supply at the start of the fifth year: 6.3892 trillion
It’s not possible to predict with any certainty how exactly Kik and Kin will use these coins, but they’ll probably be freely doled out as incentives for the next few years.
Most of the coins probably won’t ever appear on the exchanges. Instead, they’ll keep being redistributed throughout the Kik user and partner community without touching the exchanges.
Unless you want to make a down payment on a lifetime of premium Kik features, you may want to plan on giving your tokens away as an incentive to Kik users or aim to sell at various peaks. Think hard about whether there is any point to buying and holding KIN until it settles down.
How does KIN work?
KIN is a general purpose cryptocurrency for use in Kik’s everyday digital services. You might use KIN to tip someone that posts a joke, to buy pizza with an in-app pizzabot or simply send it to someone as a birthday present.
Or you might use it to amplify your own messages to reach a wider audience, to access or create VIP groups, reveal premium content or anything else you can think of.
The built-in Kik wallet may eventually help KIN serve as an accessible and usable entry-point to cryptocurrency for its users.
What should I consider before buying KIN?
KIN is in the running to be one of the most successful social currencies. It’s bringing a cryptocurrency to an active, young user base, rather than creating the crypto and hoping users follow.
The enormous interest in other social currencies, tipping coins and decentralised peer-to-peer content distribution platforms may herald a successful future for Kik and Kin. The market may be ready to get behind a coin that can deliver on these kinds of promises.
Although past performance is no guarantee, the previous success of Kik points may also herald a bright future for KIN.
However, factoring in the extremely high supply, rate of inflation over the first couple of years and ambiguity about how useful the coin will actually end up being, should be enough to keep buyers on their toes.
It’s also worth noting that the intention is to freely distribute KIN to users, to teach them how to start interacting with crypto and aid its circulation. In fact, only 5% of Kin’s stake (the 20% of remainder doled out over time) will actually be used for promotions with partners. The remainder is likely to be directly seeded to users.
There won’t be much of an incentive for most people to ever buy KIN to use. It might become the most successful social currency, but to date this is a pretty low bar. Even if it does, KIN will likely still be play money.
Purchasers might want to look a few years down the line before buying and should consider the slim chances of anyone ever actually needing to pick up KIN in bulk from an exchange.
Some might argue that a quiet scene on the market, limited exchange options and several years of inflation don’t bode well for KIN’s price growth.