Kik Chooses ICO Over IPO
Unless you’ve been under a rock, you’ve likely read a lot about ICOs (initial coin offerings) in the last few weeks. These are offerings by companies starting their own variant of blockchain-based digital currencies.
This year has not only seen the explosion in the price of bitcoin itself but also the second and third most popular cryptocurrencies — Ethereum and Ripple.
More interesting, there’s been a rise of many additional cryptocurrencies such as Steem, Dash, AntShares and Dogecoin. In fact, if you measure bitcoin’s market capitalization as a percentage of the market capitalization for all cryptocurrencies, it’s currently at 45.5 percent, down from 94 percent a year ago.
The value of all cryptocurrencies now is $88 billion, which is actually down from $114 billion a few days ago.
New ICOs have raised $500 million so far this year. One community that is showing great interest in becoming part of the trend of launching a new cryptocurrency is start-ups.
Last week, Thai fintech start-up Omise raised $25 million in an ICO to develop a decentralized payment platform. The company had already raised $20 million in traditional VC funding.
Rahul Sood’s esports betting company Unikrn is launching its own cryptocurrency called UnikoinGold as the way to place esports bets on its platform. Unikrn has raised $10 million from Mark Cuban, Shari Redstone’s Advancit Capital, Elisabeth Murdoch’s Freelands Ventures and others.
However, social messaging company Kik has bigger plans for its upcoming ICO. In a recent talk given by Kik founder and CEO Ted Livingston, he explained that Kik saw its ICO of a currency called Kin as a potential alternative exit for them.