Coin Metrics: Kin indicators do not confirm its superiority over BTC and ETH in terms of activity
The developer of the messenger Kik has provided the US Securities and Exchange Commission (SEC) with inaccurate data regarding the activity on its blockchain. This is the conclusion reached by analysts at Coin Metrics.
In a new report, they review two statements made by Kik regarding the Kin blockchain and its eponymous cryptocurrency. In November 2018, Kik wrote in an email that “daily activity on the Kin blockchain has exceeded Bitcoin and Ethereum – evidence of widespread adoption and proliferation.”.
Coin Metrics argue that daily operations – the metric that Kik refers to – involved creating multiple accounts, much of which was subsequently unused. Although the number of Kin transactions was indeed at a high level, analysts claim that the value of the assets transferred with them was significantly inferior to other large blockchains..
Kik, in its confrontation with the SEC, also insisted that the token, which “more than 300,000 people earn and spend as currency,” cannot be recognized as a security. Coin Metrics, in turn, claims that there were approximately 35,000 addresses at the maximum levels with over 10,000 KIN leftovers (totaling about $ 0.21 at time of publication).
“This figure is several times lower than the values of other blockchains from our sample, each of which has at least 1,000,000 addresses with a remainder of $ 1 and more,” the report says..
Thus, analysts come to the conclusion that the data used by Kik to demonstrate the dominant position of its blockchain over Bitcoin and Ethereum, in fact, does not confirm the company’s statements. “It is critical to take many factors into account, including the type and quality of use, to get a complete picture of activity on Kin or any other blockchain,” they add..
Earlier it became known that the SEC began prosecuting Kik due to an alleged violation of laws in the field of securities during the 2017 ICO.