This article comes fromAMBCrypto, original author: Chayanika Deka
Odaily Translator |
In the investigation Kik filed against the US SEC earlier this monthlitigationlitigationwhen responding toCoinMetric data
Kik made two claims in its letter to the SEC.FirstFirstIt is estimated that Kin surpassed ETH and BTC, setting a record of fifth place in the daily activity of the blockchain (blockchain activity). When considering its action count (the number Kik uses to support its claimsame measure
In terms of the number of operations, the report explains, According to the metric used by Kik, blockchain activity is defined as the number of operations performed on the blockchain in the past 24 hours. Actions are broadly defined as any activity that can be recorded on-chain. types of operations. But the operations of different blockchains are not standardized, which makes comparisons across blockchains difficult.” Furthermore, parallel comparisons between blockchains with disparate use cases and operations are difficult . While initial Kik research showed a high number of account creations, Coin Metrics data showed many of those accounts were empty.
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Kin has a balance account vs an empty account, image source:
Additionally, the Kin Create Account operation costs 0.001 Kin. The report emphasizes that metrics such as the number of operations used for blockchain activity cannot be used as a measurement tool because the bitcoin and ethereum blockchains do not track account creation on-chain.
In response, Coin Metrics designed the Adjusted Transfer Value metric to remove what it calls noise and certain artifacts, such as self-sending, or deliberate spamming. A clearer picture: Even though it has a lot of day-to-day blockchain operations, its transfer value is lower compared to other blockchains.
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Also, Kin has a low average transfer value compared to other blockchains. Regarding Kiks first claim, Coin Metrics concluded that the Kin platform has more microtransactions relative to Bitcoin and other dominant blockchains, while emphasizing that the latters blockchain is not primarily used for such transactions .
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Average transfer value, image source:KiksIs more than 300,000 users using Kin as a currency for income and spending, according to CoinMetrics assessment of its blockchain usage. The number of addresses is not necessarily equal to the number of users, since a single user may have multiple addresses. Therefore, Coin Metrics takes into account the number of active users, which the report defines as “the number of unique addresses active in the network (as recipients or initiators of ledger changes) that day.” Significantly more active addresses than Kin 3. While Kin is migrating to Kin3, Kin appears to be using data from the Kin2 chain to support their claims about usage.” Additionally, Kin 2 and Kin 3 have more revenue than originating payments Active addresses, meaning there are more earners than payers on Kin, also noting that there are less than 35,000 addresses with more than 10,000 KIN (~$0.23). These numbers are lower than other blockchains (with at least 1 million addresses owning at least $1), the report added.
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Comparison of balances of different blockchain addresses, image source:
