Kik messenger known as Kik was once a popular messaging app from the Canadian company Kik Interactive. Chief Executive Officer of Kik Ted Livingston announced that the company is going to shut down the messenger and will indulge in a new venture of Kin cryptocurrency. It is an effort by Kik to save money as it is struggling with the Securities and Exchange Commission (SEC) over whether its Initial Coin Offering (ICO) should count as security.
On Monday Livingston published an article which states that he has decided to shut down the company and lay off people due to its struggle with SEC. The SEC sued the company for raising money in 2017 through a cryptocurrency sale when it launched Kin ICO. The lawsuit has made Kik to dissolve the company.
To cope up with the lawsuit, Kik has taken three actions. First is the shutting down Kik, reduce the team size to “an elite 19 person team” by laying off 100 people and focusing on “converting Kin user’s into Kin buyers.” Kik plan to fight SEC is quite ambitious. Kik will use the remaining employees to expand the Kin blockchain to support more transaction and work with developers who will help to support Kin. Kik is also planning to make a mobile wallet from buying Kin.
Livingston said, “Today most cryptocurrencies rely on speculative demand from exchanges to fuel their crypto business models. But Kin isn’t available on most exchanges, so we can’t rely on speculative demand.”
“After 18 months of working with the SEC the only choice they gave us was to either label Kin a security or fight them in court,” said Livingston. Kik is planning to make customers buy Kin and use it.
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