Coin Metrics Report Claims Kik Presented Inaccurate Data About The Kin Blockchain
- Kik might have presented wrong information about its Kin network
- Coin Metrics compared the data provided by Kik with other blockchain networks such as ETH and BTC
Kik has recently provided information about activity on its blockchain network to the U.S. Securities and Exchange Commission (SEC). However, Coin Metrics reported that these claims made by Kik are inaccurate.
Kik’s Inaccurate Claims About Kin
Back in 2018, Kik claimed that their network exceeded Ether (ETH) and Bitcoin (BTC) in daily blockchain activity. This demonstrated that Kin was adopted and used by many individuals around the world. However, Coi Metrics claims that the daily operations included a large number of account creations.
Indeed, some of these accounts seem to be empty after a single transaction processed. Although Kin had a very interesting number of daily transactions, it was far from reaching a similar level as top tier blockchain networks.
In addition to it, Kik has also questioned the SEC regarding the token as a security. They said that there were over 300,000 individuals that earned and spent kin as a currency. Coin Metrics explained that there have been just 35,000 addresses that held more than 10,000 kin worth around $0.23.
On the matter, the report commented:
“This is orders of magnitude less than other blockchains in our sample, which each have at least 1,000,000 addresses that hold at least $1.”
Coin Metrics explained that multiple metrics showed that the Kin digital asset was not used more than other chains such as Bitcoin or Ethereum. Just last month, Kik has launched a $5 million crypto campaign in order to deal with the SEC and improve its regulatory clarity.
Back in September 2017, Kik was able to gather almost $100 million during a token distribution event. However, the US regulator claimed that Kik may have violated securities laws in the country. Since that moment, Kik is working in order to prove it has been operating in the market as it should.