Chat software Kik will issue encrypted currency financing of $ 125 million


nnnHotline: Canadian chat software operator Kik has announced plans to raise $ 125 million through ICO on Sept. 12. It is reported that the company will create a new currency called Kin, used to trade within its application. The financing of the “hard top” to 125 million US dollars, than the company had previously venture capital to obtain the funds even more than nearly 5 million US dollars. At present, the company has completed the pre-sale phase of the new encrypted currency, while Kik’s ICO will also be open to US investors.n
nnTranslation: Clovern
nKik, a $ 1 billion Canadian telecom operator, plans to launch its first digital tokens (ICO) to raise $ 125 million on Sept. 12.n
nKik was founded in 2009 by a group of college students, according to the company that its monthly active users reached 15 million people, covering 40% of the US youth.n
nAccording to the financial technology analysis provider Autonomous NEXT data show that the recent ICO using Bitcoin underlying technology to raise funds in the popular way in this year’s explosive growth, so far has raised $ 1.8 billion in funding. This allows some companies to raise millions of dollars in a matter of seconds while bypassing traditional financing methods such as venture capital and capital markets.n
nThe massive growth in the ICO market is seen by many people in the financial services sector as a bubble, and some companies can use this method to raise large amounts of money without the need for real products. And to raise money through the ICO, the company will issue a new digital currency that can be consumed in its ecosystem (which is somewhat like Disney dollars) and can be used to support some of its business.n
nKik’s ICO will create a new encrypted currency called Kin and will be used for trading within its application. According to Tanner Philip, the company’s product manager, the company wants Kik 300 million registered users to help drive the adoption of new digital currencies on all digital platforms.n
nAccording to Kik CEO Ted Livingston, Kin has been preparing the plan since 2014, and the earlier prototype of this digital currency is called the Kik Points, a non-block chain digital currency.n
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nTed Livingstonn
nLivingston told Business Insider:n
nn”Since 2011, we have been considering participating in the field of encrypted money.”n
nnThe financing of the “hard top” to 125 million US dollars, than the company had previously venture capital to obtain the funds even more than nearly 5 million US dollars. The company has raised $ 50 million in new sales through the new currency, including investments in encrypted currency hedge funds Pantera Capital, Polychain Capital and venture capital firm Blockchain Capital. The remaining $ 75 million in sales will take place within two weeks of the September 12 start.n
nICO sold only 10% of the total supply of Kin. According to Philip, 60% will be held by the so-called Kin Foundation and released under the reward system to those who participate in Kin trading.n
nPhilip said:n
nn”For example, if I were a game developer, I was able to create an environment where users were able to trade with each other in this environment, and then I was able to get the token.”n
nnKik’s ICO will be one of the few projects that are open to US investors. In July, the Securities and Exchange Commission said ICO could sometimes be regarded as securities and would be subject to strict laws and regulations. In order to avoid such regulatory requirements, many ICO since then no longer open to the US investors.n

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