According to a report dated November 14, 2018, the messaging app maker, Kik, will migrate its token development from the Ethereum blockchain and the Stellar protocol.
It is said that their cryptocurrency Kin is moving towards the stellar blockchain, and Kin Ecosystem Foundation says it will soon release a migration tool.
Stellar offers what Ethereum can not
This is not the first time the foundation took into consideration the idea of abandoning the network on which they raised just under $ 100 million through the ICO conducted in September 2017.
At the start of this year, Kin revealed their plans to use both heterogeneous and stellar blockchains to support their token. As explained at the time, Ethereum would have to ensure the security of user assets, while Stellar would have to provide high throughput and substantially lower transaction costs.
The original plan was to allow users to use both blockchains and move their digital assets from one to the other as they wanted.
However, the foundation finally decided to leave Ethereum entirely, probably due to the fact that network congestion during the craziness of Crypto Kitties in December disabled the first Kin network tests on the world's largest smart contract platform .
The founder of Kik Messenger, Ted Livingstone, stated that the goal of his company is to have "a Kin on a blockchain" and that their strategy is constantly evolving to achieve that goal.
It has also been reported that the Kin Ecosystem Foundation, while it is designing ways for its users to earn and spend their Kin, is making arrangements for the token to move permanently into the new ecosystem, which will automatically burn all existing ERC-20 tokens.
In addition, the foundation has stated that they will not unnecessarily solicit the problem because their users will not have a deadline to complete the migration of their tokens.
Kin is not the first
Kin is not the first because we see a trend of projects that leave Ethereum after a successful token offer to find a better platform.
Some of the biggest cryptocurrency projects, such as EOS, Tron and VeChain, have decided to download Ethereum to look for alternative solutions. However, both these projects have developed their own networks instead of using an already existing ecosystem.
The biggest general problem for these platforms seemed to be the well-known scalability problem affecting the Ethereum network. Going forward on their own, EOS and Tron have both compared their systems with the ex-parent chain, claiming that their products are more able to scale than Etherum, which is often expensive and congested.
A growing trend?
Recent announcements tell us about several development teams that devise user-friendly solutions for such migrations, allowing development teams to seamlessly transfer their development to the new network, primarily focused on EOS.
Such a solution, already covered from XBT.net, it is the EOS21 protocol of shEOS, for one-way migrations of Ethereum-EOS.
Since the new blockchains are offering speed and are being marketed to be cheaper, there could be more projects looking for shelter elsewhere, like Kin.
The ability of Ethereum to provide a sort of incubator for encrypted startups could prove unfavorable to the Ethereum ecosystem in general, because their main product, the smart token production contract, has made the network slower and more more expensive with the increase in the number of tokens placed on Ethereum.
Considering that Ethereum is in the delicate phase of the passage from the Labor Proof (PoW) to the Pole Test (PoS), all that uncertainty surrounding a large enterprise can cause more migrations of this kind.
Disclaimer: This is not an investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your 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.