The Telegram crypto Gram has finally been unveiled to great acclaim, but what they forget is there is already another chat app/crypto token in town called Kin.
Telegram, the messenger app, raised $1.7 billion dollars for their potential crypto offering in an initial initial coin offering (ICO) in 2018. Then, we didn’t hear a thing. Now, on October 31st they are introducing their messaging app token called Gram for use by their 200–300 million global users.
“According to the Times, Telegram “is also planning to make Gram digital wallets available to the 200 million to 300 million global users of Telegram’s messaging application,” a move which would see it beat Libra, still without an official launch schedule.” ~Bitcoinist
Does this sound familiar to anyone?
Kik “only” raised $100 million in an ICO, with 300 Million users of their messaging app.
The Bitcoinist article seems to think this is a sort of competitor to Libra, but I feel that’s tangential at best. What we have here is a head-to-head competitor with Kin.
Similar total number of users, yet Kin is ahead of the game, already having 57 Apps in its corral of apps, and over 630k monthly active spenders:
One of the apps is a beauty app (Perfect365) with over 100 million mostly female users. And every app they add garners more potential users onto the Kin bandwagon.
The advantage that Telegram has (besides adding an extra zero to their boatload of ICO money), is that Telegram is not being sued by the SEC for having an illegal security sale through their ICO.
The crucial difference was that Telegram only had a private ICO with accredited investors, while Kin also targeted retail investors.
Seems to be a mighty thin hair the SEC is splitting.
Whether or not Kin wins or loses the case, being first matters when dealing with network effects.
First Mover Advantage
Just look at Bitcoin.
- Merchant Adoption
- Consumer Adoption
- Developer Mindshare
- Adoption as a World Reserve Currency
Despite having serious technical competitors, because of its first mover advantage, BTC still enjoys over 68% of the total Crypto market cap.
Kin has some of the same network effects, yet as a token some of these, such as becoming a World Reserve Currency, would not apply. Yet other Network Effects, such as Speculation, the Merchant/App adoption of 57 apps with their associated Developers, Consumer Adoption, Developer Mindshare — would.
Kin also has a Kin Rewards Engine (KRE), which rewards developers for driving the Kin ecosystem forward. And the developers are cashing in:
The SEC lawsuit adds a dampening effect, but like they say in marketing: there’s no such thing as bad publicity.
Ever since David and Goliath the world loves an underdog. And given Kik’s 130 page paragraph by paragraph response to the SEC, Kik is a scrappy underdog.
“Kik CEO Ted Livingston told CoinDesk on Wednesday that the SEC had taken quotes out of context in its original complaint, saying: “I think what surprised us is just how much the SEC twisted the facts.”” ~ Coindesk
This legal hurdle will gain more clarity on November 2019 as the deadline for the discovery process concludes.
If Kik loses, it’s not known what the effect on price will be. The outcome will leak, and so the argument against an immediate drop is that it will likely be priced in. Also, post decision, Kin will have no more encumbrances with only blue skies ahead.
Alternatively, a win will make the price zoom.
No other chat app has really stepped up to Kin. China’s WeChat was sidelined by China’s averse stance on things Crypto, and WhatsApp inherited the regulatory hurdles of Libra, so the direct competitors at the moment to Kin seem to be Telegram…and Telegram.
And Kin, despite the SEC legal action, is ahead of the game.
Nothing in this article is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information.