![]() They assert that the SEC has twisted facts in its lawsuit (and giving three examples of this in their response). Kik’s responded to the lawsuit by alleging that the SEC was taking quotes from company officials out of context. In the lawsuit, the SEC suggests the company’s original sin was tying Kin’s crypto success to Kik’s business success, thus effectively defining it as a security. Not incidentally, the ICO was a monumental success having raised $100 million. The SEC’s lawsuit against Kik asserts that its initial coin offering (ICO) for Kin constituted an unregulated sale of securities. ![]() While losing Kik will have a big impact on these numbers, the continued growth of the Kin Ecosystem has more than made up for it,” Livingston noted. ![]() “Kin has over 2,000,000 monthly active earners, and 600,000 monthly active spenders. The Kik app’s user base was primarily viewed as a shortcut to launching Kin, however, the app never succeeded in fulfilling the widespread adoption of the cryptocurrency. Dwarfed in popularity by Facebook Messenger and WhatsApp, the Kik app struggled to gain a foothold in the market. What the loss of the Kik app means Losing the Kik app may not impact the company’s bottom line all the much. In a recent segment on Bloomberg, analysts argued that the lawsuit showcases the increasing comfort the SEC has with crypto-securities law. Several cryptocurrencies are carefully watching the Kik lawsuit to see how SEC will proceed with such cases. In 2015, the company was reportedly valued at $1 billion after receiving a $50 million investment from Chinese tech company Tencent. The current downsizing is a dramatic comedown for the company. The layoffs will shrink Kin to 19 core developers so as to “ensure that KIN can scale to become the true currency of the internet going forward.” The news comes on the heels of recent reports that Kin was laying off 70 employees. Securities and Exchange Commission (SEC), Ontario-based startup Kik Interactive will be shutting down its flagship app, Kik Messenger, in order to focus on its cryptocurrency Kin.ĬEO Ted Livingston announced the decision Monday evening via a company blog post. Due in large part to its ongoing dispute with the U.S.
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