Coin Metrics claims daily operations, the measurement Kik used to gauge activity on its blockchain, included a high number of account creations — but many of these accounts were being left empty. Although Kin did have a large number of on-chain payments, the report said it fell “well below other major blockchains” in terms of transfer value.
Kik had also questioned why the SEC was regarding the token as a security when “over 300,000 people earned and spent kin as a currency.” On this second claim, Coin Metrics said there have only been about 35,000 addresses holding more than 10,000 kin (worth roughly $0.23 at press time) at its peak. The report added:
“This is orders of magnitude less than other blockchains in our sample, which each have at least 1,000,000 addresses that hold at least $1.”
“It is therefore critical to examine multiple factors, including the type and quality of usage, in order to get a full picture of the activity on kin or any blockchain.”
Last month, Kik launched a $5 million crypto campaign to fund a legal challenge against the SEC to gain regulatory clarity.