Kin (KIN) is an interesting one. The coin has run an incredible amount over the last few months and its unique positioning in the industry has set it up as a similarly unique investment opportunity for participants in the sector.

Right now, price sits at $0.00088. That’s a triple zero pricing which, somewhat counterintuitively, can be a good thing for assets in the cryptocurrency sector. Why? Because investors that are newcomers to the space want cheap entry points. They’d rather pick up 1000 tokens than a fraction of a token (this is purely a psychological bias but it exists nonetheless) and this has made cheap tokens attractive in many cases over the last few months.

Anyway, that’s a discussion for another day.

Current pricing is down from $0.0013 recorded a couple of days ago, yet volume remains up in and around all-time highs.

So what does this say to us?

That the current correction (and, in turn, current pricing) might be a nice opportunity to pick up some cheap shares ahead of an overarching return to the upside momentum.

To explain our thinking, here’s a quick primer on this coin.

Even if readers haven’t heard of Kin, there’s a good chance they’ll have heard of Kik. Kik is a messenger app that was launched way back in 2010 and has since grown to amass more than 300 million registered users.

It’s a pretty big deal and, early last year, the company raised more than $100 million by way of a proprietary token sale – as part of which it issued KIN tokens to participants. The idea is that these KIN tokens can be used to incentivize users to watch advertisements, share content, increase interaction with the platform, all that sort of thing.

And this is why this one is interesting – because the token wasn’t issued to raise development capital, instead it was issued to compliment an existing ecosystem in an already successful and well-established application.

And what’s making the coin run of late?

Well, the token is currently built on top of the Ethereum platform. The company is concerned that it might flood the Ethereum network if its users start to transact with KIN frequently and so management wants to move from Ethereum to Stellar (as a quick side note, this was one of the primary drivers behind the run we saw in Stellar back during the middle of last month).

The move to Stellar is bringing in a lot of speculative attention and the assumption is that once this move takes place and KIN becomes a key part of the Kik ecosystem, the token will be listed on one of the major exchanges. A major exchange listing is a real liquidity event and will in and of itself serve to inject some real upside momentum into the token’s market capitalization as and when it hits press.

So again, what’s making this one run right now?

Well, the Stellar shift is expected to take place (as implied by management comments recorded at the end of 2017) at some point during the second quarter of this year. Exactly what will happen to the already circulated coins remains to be seen but the assumption is that they will be switched one for one with a Stellar compliant token and that, subsequently, these tokens will also be listed on an exchange.

Bottom line, then, is that KIN holders could soon have two tokens on their hands, both associated with a major and established platform outside of the crypto space and both of which are tradable on a major exchange.

That’s why things are running and that’s why we think current levels could quickly reverse to the upside once markets latch on to the opportunity.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Kik.