Stellar Blockchain-Based KIN Sees Surge In User Activity As Reserves Set To Unlock
The Kin Network is showing a higher level of activity lately, which made it get ranked as 8th on the Blocktivity statistics. The KIN tokens, which are relatively unknown, saw a record transaction of 48,030 transactions in 24 hours, more than its normal rate, 34,789 transactions in the same timeframe.
These tokens were built on top of the Ethereum blockchain, seem to be more used more often lately. However, it is still very hard to tell for sure whether this can be the result of the KIN ecosystem usage or not. As the Kinit app was released for its closed beta testing, some more activity was also seen recently.
One of the main issues of the company is that the KIN ecosystem still holds too much uncertainty with it. The ICO was very large and it collected around $70 million USD, but only sold 10% of the total tokens and most of them remained with the company or with large investment funds like Blockchain Capital, Pantera Capital, Polychain Capital and others.
This means that these “whales” have a great power in the ecosystem and that it is not very decentralized at all.
The ICO was about a year ago and the price of the tokens is lower than that at the day of the sales. In fact, each token is worth a lot less than a single USD cent and the token has been down 8% in the last few hours, which signalizes that this is, indeed, a very weak token. At the moment, the price of each KIN token is $0.000064 USD.
While the crash has been unnerving for the enthusiasts of the token, the Kinit app has just started its tests, so there is still some room for improvements in its market. The platform, however, will use another token, not an Ethereum-based one, so this one can be used in speculative trading while the other one can be used for actual things on the ecosystem.
The KIN ecosystem will have an in-chat and you can use it to buy digital goods or subscriptions but no system will survive the fact that the top three wallets in the ecosystem hold 92% of all the tokens, which gives simply too much power for the whales and completely kills any decentralization promise.