Kik ICO Launches To Significant Investor Demand

ICOs, or initial coin offerings, have been widely discussed in financial and investment circles in 2017, with almost $2 billion raised from issuing blockchain tokens this year so far.

But none of the ICOs thus far has experienced the hype of messaging app Kik, which is targeting $75 million in funding from its initial round.

Regarded by some as the first example of a mainstream company opting for ICO over other forms of raising capital, the Kik ICO has finally launched, going live at 9 a.m. EST yesterday.

Initial results have been promising for the firm, with strong demand reported throughout the day, as it seeks to supplement the initial $50 million raised from its private issue of its Kin token to large institutional investors.

The tokens will be used by the Kik platform in future to power its platform, including apps that the company expects will fuel demand for the currency in the secondary market. If the messaging giant reaches its investment goal, it will have raised a total of $125 million from the ICO.

Individual investors were limited to purchasing only 15.2 ETH worth of tokens on the first day of launch, with the limit removed for today’s sales for any remaining tokens that have yet to be snapped up.

While there are no firm results as yet, with a number of transactions still waiting to close, early totals suggest the ICO is on track to match or better the performance of other recent ICOs, in what would appear to be a firm vote of confidence in both the fundraising model, and the underlying prospects of the Kik platform.

Kik representatives are remaining tight-lipped on the ICO’s performance for the time being, preferring instead to wait for more deals to confirm before declaring the numbers. However, while the process appears to be working well for the firm, the launch has been beset by several problems.

Most notably, a fake URL was circulated on social media ahead of its official launch time, spreading false news of an early start to the sale. Since the scam began, it has attracted over $21,000 in ETH payments, including individual transactions as high as 5 ETH, or over $1,527.

Nevertheless, the initial coin offering thus far appears to have been successful, though analysts will wait for confirmation of the final figures from Kik before drawing any firm conclusions.