Kik messenger ditches Ethereum blockchain adding to ETH woes

  • Kik moves to Stellar, abolishes atomic swap with Ethereum.
  • ETH/USD is capped by $180.00, upside is limited.

Ethereum, now the third largest cryptocurrency by market value, is changing hands at $179.25, capped by $180.00 handle. The coin is virtually unchanged since this time on Thursday. 

The developers of Kik messenger are going to migrate from Ethereum blockchain to Stellar. Kin Foundation has announced the decision to cease atomic swaps with ETH, thought the exact date has not been set yet. According to the team, the developers are working on the instrument that will allow taking KIN tokens from Ethereum blockchain. 

Kik management mentioned that tokens may be transferred from Ethereum network at the beginning of November, citing Ethereum scalability issues. They have chosen Stellar as an alternative. 

In March 2018, they created a system that allowed to work on both platforms, where Ethereum was used mainly for security purposes, while Stellar was aimed at optimizing performance. The blockchains were connected by the system of atomic swaps.

"Migrating fully to the Kin Blockchain eliminates the complexity of swaps, removes the confusion created by having two types of Kin tokens, and simplifies the integration process with both exchanges and consumer applications," the company explains in the press release. 

Ethereum's technical picture

On the intraday level, a sustainable move above $180.00 will open up the way towards $183.47 (SMA50, 1-hour). The ultimate resistance lies with $200, though considering flat RSI and lack of positive drivers, the coin has low chances to get there any time soon.

On the downside, the support is created by $175 congestion zone, followed by the recent low of $168,54.

ETH/USD, 1-hour chart


 

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