Despite raising over $100 million in Kin’s official initial coin offering (ICO), company CEO Ted Livingston has opined that ‘almost nobody should be looking at’ blockchain technology.
Speaking at the Truth North technology conference, Livingston explained that “unless you’re trying to build one of the most-used cryptocurrencies in the world, it’s very low odds that blockchain is going to create value for you.”
Speaking on his experience with Kin – the native digital token designed to underpin the Kik platform – Livingston went on to add that blockchain technology does not convincingly bring many benefits in terms of practical usage.
“What does blockchain do at the end of the day? It allows you to have a database that’s trustless. That can be applied in a bunch of ways, but most of those ways, you still need trust”, the CEO said.
Livingston balanced his view, however, by noting that digital currencies have created ‘enormous incentive’ thanks to the ecosystem developing around new projects and products. Underpinning Livingston’s ideology is an appreciation for the ‘genius’ of Bitcoin – which he attributes as the concept of digital scarcity.
Livingston’s pessimism is perhaps understandable in the light of the fact that Kin ran into ‘difficulties’ earlier this year – leading the release of its proprietary token delayed.
Earlier this year, Livingston confirmed that Kin will leverage both the Ethereum and Stellar blockchain – using the former platform for liquidity, and the latter for transactions. In a press release, Livingston opined that “Creating a bi-directional blockchain with stellar will drive mass adoption of kin by providing faster confirmation times, low transaction fees and scalability.”
Kik will introduce some 900 billion Stellar-based Kin tokens by the second semester of 2018 for in-app transactions, whereafter users will be able to convert Stellar-based tokens to ERC20 Kin tokens that could be traded on secondary markets.