Focus on Kin Price, and You Miss the Big Picture

Focus on Kin Price, and You Miss the Big Picture

There is nothing wrong with looking at the Kin price chart, now and then, so that you are aware where the asset stands in the marketplace. 

It is, however, an entirely different thing when the price is turned into the sole parameter for measuring the success of the project.

The Kin price is important, but not more than what the token is designed to achieve. The token is intended to be an attempt to change the monetization model of the internet. 

It is now a widely accepted fact that on many platforms online, the user is not the customer but the product. 

The actual customer is the advertisers who buy data and the attention of the users from the online forums and publishers.

Kin is indeed one of the many blockchain projects that are attempting to disrupt how value is created and shared on the internet, especially regarding publishing.

Others include Steemit, DTube and DLive. However, there is something special about Kin. It is the first project that is a scion of a well-established mainstream brand.

Kin started as a side project of Kik, one of the most used social messaging apps. Kik was first released in October 2010 as the first product by the Canadian company Kik Interactive Inc.

The app has over 300 million users, the majority of whom are based in the United States. Indeed, Kik is in the same league with the likes of Twitter, Facebook, LinkedIn and YouTube. 

What put Kik on the path to using blockchain?

Social media sites have always struggled to find a monetization model that works best for them. 

Some like Facebook and Twitter have decided to embrace the conventional Internet monetization strategy. And that is displaying ads and selling user data to advertisers. 

That has not turned out very well. For example, in early 2018, it was disclosed that Cambridge Analytica, a British political consulting firm, was using data from Facebook unethically.

Facebook ended paying fines to several regulators around the world for this misuse of user data. Among others, the company paid $50,000 in the UK and $5billion in the US

Kik was almost the only one of the major messaging platforms that choose to pursue a different path regarding monetization. 

In particular, the company wanted to give users more say on how content was generated and, indeed, the entire experience on its platform.

And that is what inspired it to begin testing digital tokens as a means for creating and sharing value amongst users and content creators. 

Between 2014 and 2016, Kik released Kik points, a kind of royalty points that users could earn and spend on the chat platform.

Then the company became aware of blockchain, a technology that could significantly improve this system and make it even more valuable for users through sovereign tokens. 

And that is how the Kin project was born in early 2017. In September the same year, the company raised close to $100 million by selling part of the tokens they had created on the Ethereum blockchain through an initial coin offering (ICO).

It is important to point out that Kik founders had also grown disillusioned with the traditional means of raising capital to support their development plans. 

Selling tokens on the blockchain through an ICO seemed like a better means. 

However, this has turned controversial, especially after the Security Exchange Commission (SEC) accused the company of flouting the laws and regulations that govern the issuance of securities.

According to the SEC, the Kin tokens, which that Kik issued, were a form of security. This is now a subject of litigation in court.

Meanwhile, Kin is now an ecosystem or a platform that is beyond Kik. In fact, Kik is now just one of many applications in the Kin ecosystem.

The Kin project is now overseen by the Kin Foundation, a separate organization from Kik. The vision for the token has not changed, though.

Its primary function of Kin is not as an asset for speculation at the marketplace, but as a means through which users on the online platform can create and share value.

With that in mind, the Kin token price does not signify much about the success or failure of the project.  

The real parameter is the number of applications that will adopt it as a medium of exchange and how many people will find it useful on those platforms.

More importantly, whether it manages to turn online users from products to customers. 

So, stop focusing so much on the Kin price chart.