Cryptocurrencies are a rising industry. The market prices for different virtual currencies continue to increase even as the user base for each type increases as well (some sources place virtual wallet users at a population of as high as 6 million).
Knowing the different types of virtual currencies can help you make the most profitable investment. You may be familiar with the standards like bitcoin, which has been in operation since 2008, but you may not be as familiar with newcomers like Kin, the virtual currency of the Kik messenger app.
This is a short guide on this relative newcomer to the virtual currency market and whether you should be paying attention to it.
A Brief History
Kin was launched in 2017 through an ICO that raised $100 million in investment in less than a month. The popular messaging service, Kik, launched the currency network to create what it calls a “shared economy” based in and around its service.
One of its huge advantages as a pre-existing company is that Kik was able to use its already established user base of millions to push the currency. Whereas a normal cryptocurrency would have to outsource aspects and applications of the marketplace to third parties, Kik can just use its platform to house those applications (like the Kin wallet) itself.
What is a Token Cap?
The token cap on Kin coins is a significant aspect of predicting the Kin stock price and understanding how the Kin prices work in the first place.
According to a post on Profit Secret, basically, no more than 10 trillion Kin coins can be created. This means that even as demand increases with the Kin price predictions working in its favor, the supply of the currency will remain unchanged.
As more applications use the Kin currency and its market grows beyond the confines of the Kik messenger app, the Kin token price will probably go up. As more utilities adopt a finite resource, it naturally becomes scarcer, and thus more desirable.
The Takeaway
The plan for Kin coin prices to continue increasing is significant to you as a potential investor. It means that this diversifying cryptocurrency may be a newcomer but also comes with significant advantages over some of the other currencies.
Kik’s established user base is a perfect platform to promote and expand the currency’s utility. The token cap is also a promise that the market for Kin coins will continue to become more selective.
Think about it this way: since the supply is finite, there are more Kin tokens available as investments now than there ever will be again. Observe its market for yourself to determine if it’s the right investment opportunity for you in the growing virtual currency market. Used bitcoin calculator to calculate your prices.