A CoinMetrics report on June 24, suggest that legally troubled messaging startup, Kik presented untrue statements regarding its blockchain trading activities to the United States Securities and Exchange Commission (SEC).
The analytical report paid attention to the two assertions Kik made about its cryptocurrency — Kin.
In a bid to promote its company and trading capacity, Kik claimed in 2018 that its blockchain had by far surpasses Ether and Bitcoins daily trading, thereby making a show of general acceptance and wide adoption by the blockchain industry.
Kik also claimed in its report that “over 300,000 people earned and spent Kin as a currency,” and thus, the SEC should not label the cryptocurrency as ‘security.’
However, Coin Metrics analysis suggested that Kik resorted to the creation of large volumes of accounts as a yardstick to measure its activities on the blockchain platform; meanwhile, these accounts were left empty.
While it can be said that Kin had a considerable number of accounts, Nevertheless, the report holds that it drops “well below other major blockchains” when it comes to the transfer value.
Additionally, Coin Metrics revealed that only about 35,000 addresses, holding over 10,000 Kin (worth roughly $0.23 at press time) at its highest state.
The report also 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 based on these reasons, CoinMetrics reached a decisive conclusion that Kin was not more widely in use than prominent blockchains as BTC and ETH, saying:
“It is ‘therefore] very important to examine multiple factors, including the type and quality of usage, in order to get a full picture of the activities of Kin and any blockchain.”
Meanwhile, in line with our earlier reports, the U.S SEC has officially filed a lawsuit against KIK alleging that the startup conducted an authorized sale of securities. KIK, on its part, started a fundraising effort to take the SEC to court regarding the matter.
