The CEO of Kik, Ted Livingston, has expressed his opinion about blockchain at the True North tech conference earlier this week. He told the public that “almost nobody should be looking at blockchain” which caused many negative reactions.
Livingston’s pessimistic statement is especially surprising knowing that he raised $100 million via the Kik ICO project in 2017. However, he is still with a pessimistic ideology, telling the attendees the following:
“Unless you’re trying to build one of the most-used cryptocurrencies in the world, it’s very low odds that blockchain is going to create value for you.”
He pointed that Kin (Kik’s native digital token) has a technology that is “not very convincing” in terms of its widespread practical usage. According to him, only bitcoin and a few other cryptocurrencies seem to be having real use cases.
In other words, Livingston thinks that there aren’t many practical applications for blockchain technology other than Bitcoin and other cryptocurrencies. He also added that scarcity is what moves the digital currencies and allows for a worldwide ecosystem of participants that exchange a limited number of tokens.
As he explained:
“What does blockchain do at the end of the day? It allows you to have a database that’s trustless. That can be applied in a bunch of ways, but most of those ways, you still need trust.”
Still, Livingston knows that digital currencies have changed the world and created an “enormous incentive” due to the billions of dollars in market cap. As he said:
“Today, the ‘Bitcoin computer’ is 100,000 times more powerful than the top 500 supercomputers in the world combined.”
Currently, Livingston’s project is not running smooth. After going deep in “technical issues” in 2017, the $100 million ICO is idle. Still, Livingston remains positive about the token issuance happening soon after the problems are smoothened out.
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