According to a report from November 14, 2018, the messenger app maker, Kik, will be migrating their token development away from the Ethereum blockchain and onto the Stellar protocol.
Their Kin cryptocurrency is said to be moving to the Stellar blockchain, and Kin Ecosystem Foundation states that they will be releasing a migration tool shortly.
Stellar offers what Ethereum can’t
This isn’t the first time that the foundation considered moving away from the network on which they raised just short of $100 million through the ICO conducted in September 2017.
Earlier this year, Kin revealed their plans to use both Ethereum and Stellar blockchains to support their token. As was explained at the time, Ethereum was supposed to ensure the safety of users’ assets while Stellar should have provided high throughput and substantially lower transaction fees.
The original plan was to allow users to use both blockchains and move their digital assets from one to the other as they wished.
However, the foundation finally decided to leave Ethereum entirely, which was possibly caused by the fact that network congestion during the Crypto Kitties madness in December disabled Kin’s early network testing on the biggest smart contract platform in the world.
The founder of Kik Messenger, Ted Livingstone, said that his company’s goal is to have “one Kin on one blockchain,” and that their strategy is in the continuous evolvement to achieve that goal.
It was also reported that the Kin Ecosystem Foundation, as they are designing ways for their users to earn and spend their Kin, is making arrangements for their token to permanently move to the new ecosystem, which will automatically burn all the existing ERC-20 tokens.
Furthermore, the foundation stated that they will not unnecessarily press the issue as their users will have no deadline to complete the migration of their tokens.
Kin is not the first
Kin is not the first as we see a trend of projects leaving Ethereum after a successful token offering to seek a better platform.
Some of the biggest projects in cryptocurrency business, like EOS, Tron, and VeChain, decided to dump Ethereum to seek alternative solutions. Yet, both of these projects have developed their own networks instead of using an already existing ecosystem.
The biggest overall problem for these platforms seemed to be the well-known scalability issue that plagues the Ethereum network. Going forward on their own, EOS and Tron both compared their systems to the ex-mother chain, claiming that their products are more capable of scaling than the frequently expensive and congested Ethereum.
A growing trend?
The recent announcements are telling us of different development teams devising user-friendly solutions for such migrations, making it possible for development teams to seamlessly transfer their development to the new network, mostly focused on EOS.
One such solution, already covered by XBT.net, is the shEOS’ EOS21 protocol, for Ethereum-EOS one-way migrations.
As newer blockchains are offering speed and are marketed to be more cost-effective, there could be more projects seeking shelter elsewhere, like Kin.
Ethereum’s ability to provide a sort of incubator for crypto startups may prove to be disfavorable for the overall Ethereum ecosystem, because their main product, smart contract for token production, made the network slower and more expensive as the number of tokens leaning on Ethereum grew.
Considering that Ethereum is in the sensitive phase of moving from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS), all that uncertainty surrounding such a huge undertaking may cause more migrations of this kind.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your own research and/or consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.