The platform for fundraising and crowd-investing KICKICO, after having successfully raised more than $25 million dollars this past September, is going to destroy millions of tokens. After this campaign and limited emission (458 million tokens instead of the 750 million planned), there will be 50% less KickCoins on the market than what was expected.
According to the KICKICO white paper, the unsold and unallocated KickCoins will be frozen on a smart-contract without the possibility of their subsequent withdrawal or use. Therefore, over 42 million KICK tokens will be burned. The KickCoins issue was pre-programmed and will be implemented in accordance with the KickCoins Release Plan to protect the price of KICK from speculative risks,, distributing additional tokens every month until September, 2019. For instance, in November 2017, the bonus for all KickCoin holders will be 2%, and in December the bonus will only be 1%.
KICK tokens are needed to use the KICKICO platform. They are used as payment for feedback from community members, the moderation of projects, the creation of smart contracts, as a place in the platform digest, as payment for translators and proofreaders, the purchase of virtual gifts, and much more. At the moment KICK tokens are also accepted as a payment by the startups Gameflip, Universa, and several others.
KickCoin, as well as Ethereum, is used as a currency for fundraising on kickico.com.
“Our most important strategic task on the post-ICO phase is the stability of KICKONOMY and the exchange rate of our token,” Anti Danilevski, the CEO of KICKICO, said. “Fortunately, we have already issued 40% less tokens that was expected: 458 million instead of 750 million, because the less tokens are on the market, the faster demand will be formed. And we will continue to decrease the amount of tokens, burning the tokens we have received as platform commission and etc. I expect that during 2018 we will burn 20% more of the token emission. Nowadays, we are destroying unallocated tokens from PR pool, bounty pool and additional pool. It is the right decision, we promised to do it to our backers to maintain a stable demand for KickCoin. After the burn, all actors will win: token holders, host projects, and service itself.”
At the moment, KickCoin is traded on 6 crypto-exchanges like Exmo, EtherDelta, HitBTC, etc. The daily total turnover exceeds $150,000.
Maintaining a stable token exchange rate and listing it on cryptocurrency exchanges is a challenge for many blockchain startups that have successfully raised sufficient funds in the ICO. The absence of a token on the exchanges for several months after the crowdsale raises alarm bells for crypto investors.