The Kin Foundation team were shocked, just the same as you all, at the collapse of crypto-exchange FTX and its related companies.
The collapse of FTX impacts all of the cryptocurrency industry, and we acknowledge that many Kin community members have been directly impacted, losing access to some or all of their Kin or other assets held on the platform.
The Kin Foundation has been attempting to find information about the status of the community’s Kin held on FTX. In addition to the bankruptcy event, there are conflicting reports of internal wallet addresses and security systems of FTX being compromised. So far, we have not received any insight we can share with you on its status as many of our own FTX contacts appear to have left the business. In the meantime, we are learning the same information as it’s shared in the media.
In terms of impact for Kin:
- The Kin Foundation did not keep any Kin or any of its treasury reserves on FTX, so its assets are not affected and its operations will continue as normal.
- More than 270 billion Kin Tokens were deposited by community members into FTX or its related platforms. FTX has filed for Chapter 11, a bankruptcy process in the United States, and commenced similar processes in other countries for its related companies. At this stage, it will be up to those judicial processes to determine the remedy available for FTX customers and whether they will regain access to their assets or another form of compensation.
- Like many, the Kin Foundation will spend time to understand the implications the collapse of FTX will have on cryptocurrency markets. That said, the Kin ecosystem is more dependent on utility inside and between apps. The ecosystem presently has more than 1.8 million monthly active users spending Kin as a currency within the 50+ independent projects incorporating the Kin token.
Kin has shown throughout its history that it is resilient due to the power of its community working together. This year the cryptocurrency markets have suffered a lot of adversity, with many companies and projects going under. On the other side of this storm, there will be the stories of those overcoming it. Kin and the Kin community will be one of those stories.
Kin gives everyone skin in the game–making it easy for apps and brands to reward users and create exciting experiences with cryptocurrency, all while generating new streams of revenue for themselves. Tearing down barriers to crypto development, Kin is leading the Web3 revolution by empowering platforms and their users to forge mutually beneficial relationships. Win-win is a cliché – Kin is the reality. Visit kin.org to learn more.