Kik, the instant messenger app has finally decided to quit on Ethereum permanently as it works to develop its own cryptocurrency called Kin.
While the token had initially launched early on during the upward trend of the ICO boom, Kik has since announced that it will be moving away from its atomic swap with Ethereum. While this intention was announced, it has yet to specify a date, the Kin Ecosystem Foundation said Wednesday that it would soon release a tool for getting Kin holdings off of Ethereum.
Kik had managed to raise a great deal of funding from its initial coin offering in September 2017. In total, the company managed to raise $100 million. By November however, the chronic issues that Ethereum faced regarding scaling issues resulted in discussions pertaining to finding an alternative to Ethereum, something that Ted Livingston, Kik's Founder and CEO later confirmed in December.
By March, Kik had developers a dual-chain strategy slated for Stellar, with Ethereum for security and Stellar for speed; the initial plan is that users would be able to efficiently switch between either.
Then, in May, Kik announced that even Stellar's low transaction fees were too much when placed under the strain of scale. As a result, the team decided to fork Stellar, that way it could eliminate transaction costs wholesale. Kik's Ory Brand gave a talk quite recently on the advantages of Kin with pursuing a more federated consensus system.
Since then, Kik has decided to break away from Ethereum completely, instead of working towards a dual-chain system.
Re-affirming its initial goal to make Kin the single most used cryptocurrency in the world, Livingston announced in a release:
“One Kin on one blockchain. That’s our vision, and our strategy continues evolving as we work toward building an infrastructure that supports this.”
Making Its Own Way
Kik is certainly not the only, or even first company to begin a blockchain project on top of Ethereum, only to shift away to an alternative platform. In fact, there have been a number of initiatives that used Ethereum as some form of incubation hub of sorts for a number of tokens which later broke away.
For the Kin Foundation, the network's chronic limitations became especially prominent when some of its early network testing back in December became impossible due to the growing activity around the CryptoKitties app.
The matter has since become more urgent as the team rolls out new mobile products designed to give users ways to both earn and spend kin.
One of the spokesman for the Kin Foundation explained that it has been making further arrangements with exchanges, ensuring that as users take their tokens from their digital wallets onto coin exchanges, they will make a one way move onto the Kin blockchain, burning the original ERC20 token as a result of this.
There’s no deadline for users to make the move, however. The spokesperson said that existing users can sit on their tokens on ethereum as long as they like.