The firm had high hopes for its initial coin offering, but the turnout was a disappointment
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Kik Interactive had high hopes for its initial coin offering, expecting to raise $125 million to be used to create a decentralised network of online services. However, the turnout of the token sale failed to meet its expectations and raised only $100 million.
Kik told Reuters that their stringent process of "knowing your customer", which requires participants to submit legal personal information, may have contributed to the underwhelming reception for the token sale.
More so, the volatility of the cryptocurrency market in the past weeks may have dragged the sentiments of potential customers. To recall, bitcoin slumped below $3,000 in the past week after starting the month hitting nearly $5,000. Market watchers were saying that the warning from regulators on such token offerings might have affected the value of the currency.
Still, Kik remains optimistic on its token offering and still regards it a success, mentioning that over 10,000 people from 117 countries have participated.
Reuters said customers will be able to use Kik's cryptocurrency Kin to access services from their planned decentralised network. Kin will be integrated as the primary transaction currency on the messaging platform.
Kik is the first social media application to establish its own cryptocurrency. Kin will be hosted on the Ethereum blockchain, a public ledger similar to that of bitcoin.
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Kik told Reuters that their stringent process of "knowing your customer", which requires participants to submit legal personal information, may have contributed to the underwhelming reception for the token sale.
More so, the volatility of the cryptocurrency market in the past weeks may have dragged the sentiments of potential customers. To recall, bitcoin slumped below $3,000 in the past week after starting the month hitting nearly $5,000. Market watchers were saying that the warning from regulators on such token offerings might have affected the value of the currency.
Still, Kik remains optimistic on its token offering and still regards it a success, mentioning that over 10,000 people from 117 countries have participated.
Reuters said customers will be able to use Kik's cryptocurrency Kin to access services from their planned decentralised network. Kin will be integrated as the primary transaction currency on the messaging platform.
Kik is the first social media application to establish its own cryptocurrency. Kin will be hosted on the Ethereum blockchain, a public ledger similar to that of bitcoin.
For more of Wealth Professional's latest industry news, click here.
Related stories:
Fintech firm launches new cryptocurrency offering
How ICOs are revolutionizing the startup industry
