Kin (KIN) is an interesting one. The coin has run an incredible amount over the last few months and its unique positioning in the industry has set it up as a similarly unique investment opportunity for participants in the sector.
Right now, price sits at $0.00088. That’s a triple zero pricing which, somewhat counterintuitively, can be a good thing for assets in the cryptocurrency sector. Why? Because investors that are newcomers to the space want cheap entry points. They’d rather pick up 1000 tokens than a fraction of a token (this is purely a psychological bias but it exists nonetheless) and this has made cheap tokens attractive in many cases over the last few months.
Anyway, that’s a discussion for another day.
Current pricing is down from $0.0013 recorded a couple of days ago, yet volume remains up in and around all-time highs.
So what does this say to us?
That the current correction (and, in turn, current pricing) might be a nice opportunity to pick up some cheap shares ahead of an overarching return to the upside momentum.
To explain our thinking, here’s a quick primer on this coin.
Even if readers haven’t heard of Kin, there’s a good chance they’ll have heard of Kik. Kik is a messenger app that was launched way back in 2010 and has since grown to amass more than 300 million registered users.
It’s a pretty big deal and, early last year, the company raised more than $100 million by way of a proprietary token sale – as part of which it issued KIN tokens to participants. The idea is that these KIN tokens can be used to incentivize users to watch advertisements, share content, increase interaction with the platform, all that sort of thing.
And this is why this one is interesting – because the token wasn’t issued to raise development capital, instead it was issued to compliment an existing ecosystem in an already successful and well-established application.
And what’s making the coin run of late?
Well, the token is currently built on top of the Ethereum platform. The company is concerned that it might flood the Ethereum network if its users start to transact with KIN frequently and so management wants to move from Ethereum to Stellar (as a quick side note, this was one of the primary drivers behind the run we saw in Stellar back during the middle of last month).
The move to Stellar is bringing in a lot of speculative attention and the assumption is that once this move takes place and KIN becomes a key part of the Kik ecosystem, the token will be listed on one of the major exchanges. A major exchange listing is a real liquidity event and will in and of itself serve to inject some real upside momentum into the token’s market capitalization as and when it hits press.
So again, what’s making this one run right now?
Well, the Stellar shift is expected to take place (as implied by management comments recorded at the end of 2017) at some point during the second quarter of this year. Exactly what will happen to the already circulated coins remains to be seen but the assumption is that they will be switched one for one with a Stellar compliant token and that, subsequently, these tokens will also be listed on an exchange.
Bottom line, then, is that KIN holders could soon have two tokens on their hands, both associated with a major and established platform outside of the crypto space and both of which are tradable on a major exchange.
That’s why things are running and that’s why we think current levels could quickly reverse to the upside once markets latch on to the opportunity.
We will be updating our subscribers as soon as we know more. For the latest on KIN, sign up below!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Kik.
Ethereum Flippening Bitcoin In 5 Years?
The dominance of Bitcoin (BTC) in the crypto markets due to the bear market, currently stands at 55.2%. Ethereum’s dominance is a distant second at 10.8% of the total cryptocurrency market capitalization. This is despite the fact that the value of ETH is still shaky with many traders postulating that it could get worse for the digital asset before it gets better. Ethereum’s decline has been blamed on three factors outlined below:
- Congestion issues on the network
- ICOs cashing out the ETH raised in the ICO boom of last December to late February this year
- Traders shorting ETH due to the above two reasons
Ethereum Flippening Bitcoin?
In a tweet on the 18th of September, Weiss Ratings stated that ETH will grab 50% of Bitcoin’s market share in 5 years. Doing the math, this means Ethereum flippening Bitcoin in the markets with a dominance that will be around 38%. BTC would be at half its current value, and at 27.6% of the total crypto market cap.
The full tweet from Weiss Ratings would go on to explain why this would happen:
“#Bitcoin will lose 50% of its #cryptocurrency market share to #ETH within 5 years, due to it offering more uses and being backed with superior #blockchain technology. We completely agree – unlike #BTC, which is a one-trick pony, the limit of…
Crypto News: What Happened To Bitcoin?
The crypto news of the day is what the heck happened yesterday in Bitcoin? In a matter of 2 hours, we saw the Bitcoin price go from 6320 to 6080 on Bitmex and then rocket higher to 6580. In the process, stops were cleaned out for both longs and shorts.
For all of 2018, Bitcoin has been a perfect vehicle for swing traders. The market has been playing support and resistance levels perfectly. The play has been to buy Bitcoin around the 6000 level and sell above 7000. Until this pattern changes, it’s what traders and investors need to keep doing. Yesterday’s price action, while crazy and extreme, does still support this strategy.
Why the crazy move in Bitcoin?
There are a number of thoughts as to why Bitcoin made the move that it did. They are technical related and don’t involve a fundamental reason. The first is that there are bots on Bitmex that go hunting for stops. The bot utilizes inside knowledge of where the orders are clustered. If the bot can move the market to where the stops are, it can get filled.
The second is that yesterday was the expiration of the CBOE futures contract. I am an ex-futures trader (now crypto) and know that expiration days can see some crazy moves. This is because it’s the last day to close a position on that futures contract.…
XRP Rally Lifts Bitcoin and Ethereum
It’s quite surprising to be writing this, but the XRP rally lifted Bitcoin and Ethereum off yesterday’s lows. As I wrote yesterday in covering Bitcoin, my bullish enthusiasm was dampened by Bitcoin’s $300 drop. XRP rising has given renewed hopes that the lows for the year are in and higher prices are ahead.
The most frustrating part about the XRP rally was the news put out by our competitors. We read the XRP rally was due to xRapid launching soon and also that a major Saudi Arabian bank had joined the Ripple network for international payments. I’ve been trading cryptocurrencies long enough to know that no one knows the exact reason why something happens in the market. This is a major buy spike that came out of left field.
I am certainly feeling better about Bitcoin now than I was 24 hours ago. The lack of volume and the price action felt like the market was heading lower. Today, however, we are back around the 6350 levels.
The problem is that it still not enough to make me buy more Bitcoin. We are still in the middle of the range between 6100 and 6500. This neutral zone is not an area that I want to be putting on trades. Yesterday’s jump was indeed positive, but need proof that it was not…
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