We have seen many different types of cryptocurrency ICOs over the past few years. Some of these projects focus on instant messaging applications and creating a new native token to be used as the platform’s currency. The GetGems project tried to tackle this industry but ultimately disappeared into obscurity. Status is following a somewhat similar path, yet they face an uphill battle as well. Last but not least, there is the upcoming Kik ICO.
The concept of GetGems was quite simple and elegant, on paper. The team aimed to build an entirely new social messaging platform on top of the Telegram network. This meant all Telegram users could be contacted by GetGems users and vice versa. A new native currency for this platform was introduced as well, which goes by the name of GEMZ. Being able to send money to other users from within the app makes a lot of sense.
Despite raising 2,633 Bitcoin during the ICO for this project, GetGems never managed to gain any significant traction. Monetizing advertisements on the platform with GEMS would give users a stake in the total monetary value of the system. Unfortunately, that was not enough of an incentive to lure people to GetGems and away from other platforms in the long run. It does not appear the GEMZ token is traded on any exchange these days. Safe to say this project utterly failed, despite having a lot of promise.
A few weeks ago, the Status ICO went live and effectively crippled the Ethereum network. Status is all about creating an open source client, which serves as a browser, messenger, and a gateway to a decentralized application ecosystem altogether. The goal is to target mobile users first and foremost by fully embracing available Ethereum technology. Yet another messaging platform is not necessarily something people will look forward to using, though.
During the cryptocurrency ICO, status raised close to $90m worth of Ether. A very respectable amount, even though it seems the SNT tokens are fighting an uphill battle on the exchanges right now. Making the ICO tokens tradeable quickly will always result in market volatility. It also shows quite a few investors want quick profit, rather than a successful social platform to compete with existing rivals.
Quite a few people were surprised to learn the upcoming Kik social messenger platform wants to host its own ICO to raise money. Given the track record of these social platforms-oriented ICOs – including the ones highlighted above – it remains to be seen how the decision will affect the platform’s valuation over time. A cryptocurrency ICO is a great way to raise money, even though these tokens are mainly a tool for speculation, rather than seeing the project succeed in the long run.
What makes Kik different from other projects is how they already have over $100m in VC backing to date. Additionally, the platform is already available to users all over the world, with over 15 million active users to date. This gives the platform a major leg up over any of its competitors in the cryptocurrency ICO space. The team is confident they can merge social interaction with cryptocurrency moving forward. Moreover, they experimented with Kik Points in the past, which provided the team with valuable feedback. Kik is in the best position to make their ICO venture succeed right now, that much is evident.
