There's an ongoing propaganda campaign active on all social media channels to #DefendCrypto. Please don't fall for this obvious scam!
First of all, Kin has as much to do with crypto as Binance DEX has to do with decentralization. Both are simply attempts to sell you bullshit, and people have been eating it up!
Today, Kin is a fork of Stellar (XLM). Stellar is already a pseudo-decentralized scam - a real blockchain cannot go down when two nodes crash. But Kin decided that this is perhaps too decentralized for them and they want tighter control.
Before launching, Kin raised almost $50,000,000 from unsuspecting public by selling them an ERC20 token on Ethereum. They soon realized that ERC223, the token standard that we are championing, is a vastly superior token standard. But their technical team was too incompetent to make the necessary change. Not only that, but they couldn't even google our open-source ERC20->223 upgrade code.
Most recently Kin has resurfaced in the news after the SEC has filed a lawsuit against them, claiming they are guilty of conducting an unregistered security sale. Let's address two points here: the role of SEC in investments, including cryptocurrency projects, and whether Kin was an unregistered security.
Role of SEC
You've been told scary things about the SEC by your paid group leaders on telegram, celebrity liars on twitter and even Elon Musk. But if you think about it, SEC is a beautiful force for decentralization. SEC is here to ensure that status quo with respect to investment rules and securities remains - accredited investors only, full KYC, all the good stuff. If your coin is a security (read: centralized bullshit) they will find you, sue you and shut down your company, attempting to return as much to investors as possible.
And that is a good thing! This way SEC prevents the crypto ecosystem from profiting on making fake-decentralized apps like EtherDelta and Kin. In case of Saturn, for example, they have no claim - everything is on-chain.
By making it harder to run scam fake-decentralized ICOs, SEC is actually helping truly decentralized projects to flourish.
If anything, we hope that SEC will turn their eyes to even more ICOs and will sue even more projects.
Is KIN an unregistered security?
Kin was created by the company behind Kik messenger. After having raised $200M from venture capitalists they were still bleeding money and were not getting any closer to monetization. Luckily, it was summer 2017 and their leadership decided to save the company: Let's sell a shitcoin like everybody else!
They sold an ERC20 token, only to later realize that it was a bad choice. Then, they announced that they simply needed more performance so they're moving to XLM. Then they forked XLM.
Today, apparently one can use KIN to purchase sticker packs within the app (wow, decentralization is so cool!). And even the target audience of KIN, people who actually use this app to chat, don't know about this feature, and neither do they care.
So, they lied to investors originally (by saying it'll be a decentralized token on Ethereum), then centralized the whole thing, and now developed a product that is not useful.
I'll let you decide whether it is a decentralized cryptocurrency project or centralized fraud.
How is an incompetent team raising $50,000,000 while real technology wizards like us are scrapping month-to-month? And now they dare to tell you to give money to them so they can #DefendCrypto? They have nothing to do with crypto!
The best thing that can happen to cryptocurrency ecosystem is SEC winning the case in court and bankrupting KIN. Maybe this will deter 100% marketing 0% innovation projects from our industry.
If you want to #DefendCrypto you need to seek out builders and support them, instead of doing token swaps on binance chain 🤣