In September the Kin Foundation ICO raised $100 million. Now they’re considering a bold move, transferring their services, including chat app Kik, away from Ethereum and onto the Stellar network.
In a townhall Q&A CEO Ted Livingston claimed that Ethereum cannot scale Kin’s own requirements, describing the platform as “the dial-up era of blockchain.”
Citing issues with Ethereum transaction fees and capacity Livingston announced that the Kin Foundation would be conducting tests with Stellar. If all goes well, the switch will happen in spring next year.
The move has been a few months in the making. Head of Kin’s Kik chat-app, Leonid Beder, announced in October that they were consulting with token-holders on alternative blockchain options.
Stating that the aim was to scale the Kin ecosystem to as many participants and transactions as possible, he said they realised that, “Ethereum might not be the right solution“.
Kin had to delay the release of its latest version due to the unexpected popularity of CryptoKitties, and the resulting congestion on Ethereum, which seems to have contributed to the decision.
Livingston thinks that Stellar will offer a much better fit, saying, “It’s very focused on what it’s trying to solve for: fast, reliable and inexpensive transactions for a lot of people,” adding that it was “not like Ethereum where it’s trying to be everything to everybody, and that makes it general-purpose and slow.”
Stellar was co-created by Ripple co-founder Jed McCaleb in 2014. It is increasingly being seen as a viable alternative for ICOs, and its price is up 35% on last week.