The popular chat app, KiK, is hoping to use an ICO to raise $125 million in September 2017. With $50 million already allocated to institutional investors, including Pantera Capital, KiK is hoping to raise the additional $75 million by offering their coin, Kin, to sale to the public on September 12th.
What is KiK?
KiK is a popular instant messaging mobile app that allows users to chat anonymously through a mobile device’s data or Wi-Fi without the use of a phone number. The app was developed in 2009 and as of May 2016, has over 300 million users and used approximately by 40% of US teenagers.
How to Participate in the KiK ICO?
Those wishing to participate in the KiK ICO and buy Kin, must register prior to September 9th at https://kin.kik.com/. To register you must have a passport / social security details, an Ethereum wallet address, and other info.
According to a post on TechCrunch, there is a cap on the amount that individuals will be able to purchase through the ICO on September 12th.
The cap will be determined by $75 million being divided amongst the number of white-listed individuals. If there are any unclaimed coins after September 12th, KiK will offer registered users the chance to purchase these.
Messaging app company #KIK has revealed that it plans to raise $125 million from its #ICO. :currency_exchange::chart_with_upwards_trend: The event will take place :soon:Sept. 12 #coinreviews #bitcoin #LiteCoin #Ethereum #bitcoinnews #cryptocurrency #bittrex #poloniex #money #bitcointrading #bitcoindaily #bitcointips #cryptotrading #bitcoinvalue #bitcoinminer #bitcoinnews #bitcointrading #btc
Why KiK is Taking the ICO Approach
While other apps utilize advertising to fund their platform, KiK is hoping to capitalize on the soaring popularity of the cryptocurrency market to raise money for their developer community. KiK wants to raise money to help developers create apps and services that not only gain users attention but also create value.
KiK CEO, Ted Livingston, is hoping to turn Kik into an “economy” for the millions of users who use the platform, as he stated at a TechCrunch event in China.
KiK is hoping the ICO will generate a lot of interest given that it is a mature platform that has already raised more than $120 million from traditional venture capitalists, and has a “unicorn” valuation of over $1 billion.
Livingston understands that the ICO approach is more conventional for start ups, rather than established companies like Kik, however, he believes an ICO will take the pressure off of a possible acquisition or IPO.
Similar platforms, like Snapchat, have failed when it comes to traditional IPO options. Livingston understands that there is a risk when going with an ICO, just like there was a risk with the dot-com era, however, he hopes to come out of it as successful as Amazon and Google came out of the dot-com era.