Tuesday, August 16, 2022

Kik CEO announces to shut down the messenger app to fight SEC

The Takeaway:

Kik CEO Ted Livingston announced to shut down the messenger app and lay off more than 100 employees. In a blog post, he revealed to take on the SEC in a legal battle. SEC filed a lawsuit against the company for conducting an illegal ICO for its cryptocurrency Kin.

CEO of Kik and Kin cryptocurrency, Ted Livingston announced in a blog post that they are shutting down the Kik messenger app and reducing the staff to just 19 people. He wrote that they have only two options weather list Kin as security or fight SEC in the court. Livingstone chose the latter option. 

According to Livingston if Kin became security, it would kill the usability of the cryptocurrency and would set a dangerous precedent for the industry. Livingston wrote that they don’t have enough resources to take on the SEC and will have to take tough measures, including shutting down the messenger app and laying off more than 100 employees. 

Livingston also announced that they would solely focus on converting Kin users into Kin buyers. Kin raised almost 100 million dollars in its ICO in 2017 but SEC this year filed a lawsuit against the company alleging that the ICO was illegal. 

The CEO plans to focus on the growth of Kin and making it available to millions of people. Nineteen people team would work on the Kin blockchain and would develop a mobile wallet for the cryptocurrency to make transactions easier. 

Currently, Kin has over 2,000,000 monthly active earners and 600,000 monthly spenders. Livingston plans on getting at least a million people to buy the cryptocurrency. Let us know in comments what do you think about SEC trying to characterize all cryptocurrencies as securities. 

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Dorsey Gray
Dorsey Gray
Dorsey works in the oil and energy industry since he graduated as a mechanical engineer from Bagdad Senior High School. However, he loves to explore and write about the financial world while he sits in the balcony of his beachside room. Dorsey also loves to cook, but just for himself.

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