LINE is the only major messenger that managed to launch its own cryptocurrency without having problems with regulators.
The popular Japanese messenger LINE decided to reward users of its digital services by distributing LINK tokens to them. According to Coindesk, the incentive program applies to 3 mobile applications: LINEPay (monetary transfers), LINE Securities (personal investment service), and LINEScore (credit scoring).
The incentive program is aimed at supporting the LINE blockchain project, which the messenger launched two years ago. In 2018, the company’s blockchain laboratory introduced the Link Chain network, of which LINK is the native token.
LINK was originally conceived as an incentive to use services in the messenger ecosystem. The company even abandoned the ICO procedure: LINE issued 1 billion tokens, 800 million of which were allocated to users, and the remaining 200 million were reserved for the needs of the company.
LINK tokens are traded on one single platform – Bitfront. The latter also belongs to LINE. LINK has dropped in price by more than 50% over the past 30 days, according to Coingecko. Back in August, it traded at $ 28-30 – now the token costs just over $ 12.
Link token rate. Source: Coingecko
LINE launched its User Incentive Program on September 18th. The company plans to give out 2K yen ($19.6) each in LINK tokens to credit cardholders launched by LINE Pay, and up to 500 yen ($4.76) to those LINESecurities users who have at least opened an account in the app and completed a questionnaire. How LINE Score users are going to be rewarded is still unknown.
Interestingly, LINE is the only major messenger that managed to launch its own cryptocurrency without having problems with regulators. This is probably is explained by the refusal of the company to conduct a token sale.
As a reminder, Pavel Durov’s messenger Telegram tried to launch his own cryptocurrency. Investors invested $ 1.7 billion in the TON cryptocurrency, but it was never released due to the company’s conflict with the US Securities and Exchange Commission (SEC). Against the background of pressure from the latter, the messenger team decided to close the project.
Canadian messenger Kik also had problems with the SEC. In 2017, he conducted a token sale of KIN tokens, during which he managed to raise $ 98 million. The SEC considered that Kik had thus implemented an illegal sale of securities. Litigation in this case still continues at the time of writing. The conflict with the regulator dealt a tangible blow to the business of Kik Interactive – in September 2019, the company announced that it was forced to close its messenger, but later it found a buyer for it.