Kin - Token Has Potential But Technical Details Are Lacking, Valuation and Float Increases Understated

Today, we published a report on the highly anticipated Kin ICO, which was created by Kik Interactive, Inc. and begins tomorrow, Sep. 12. We think the project is interesting because it is by far the most high-profile company with the largest user base to attempt to augment an existing business, Kik Messenger, with a token based model. The Kin token has the potential to enhance existing user experience, create new use cases within Kik Messenger, produce new monetization streams for developers, and invigorate the community on the app.  We believe there are many other organizations examining tokenizing existing businesses and will be watching the outcome of this project closely.

However, many details about the token, including key technical details, are currently lacking. A formal white paper has not been published and the code base for their smart contract is not available for audit. Finally, we believe that the specifics presented by the company about the ICO sale economics, including valuation and inflation rates, are misleading. Our analysis suggests that the valuation is $1.25B and the first year float increase is 185%, which are significantly higher than what was presented.

Clients of Digital Asset Research can access our report here.