Cryptocurrency

Kik Messaging App is Closing Down; The Focus Has Now Shifted to KIN

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Many reports are surfacing that the Canada-based firm “Kik” is looking into shutting down its messaging app platform. Further, Ted Livingston Founder & CEO of the Kik, also confirmed that the shutdown plans for the messaging app are true.

The main reason that has been stated is to have room for focusing on KIN. KIN is the native token from Kik. The development of the crypto token will benefit from the concentrated focus approach. As of now, the company is considering laying off its staff members to 19 members. In this direction, reports say that around 70 employees have been laid off. Some reports suggest that an alternative transfer has been offered to many of the company’s employees in the same sector.

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Another reason behind shutting down the messenger app is around holding grounds tightly in the legal conflict with the U.S. SEC (Securities and Exchange Commission.) The U.S. SEC sued the Canadian startup on the grounds of the unregistered token offering. The offering was of $100 million. This case has raised questions on the ICO (Initial Coin Offering) status of Kik.

On the other hand, SEC accuses the Canadian startup of depriving the investors of the KIN ICO, which was organized by Kik. The startup, as per SEC, has not been transparent about the crypto token during this ICO. This transparency was the legal right of the users and investors, which prevented them from making an “informed decision.” Co-director of the SEC’s Division of Enforcement, Steven Peikin said that the startup has “deprived investors of information to which they were legally entitled. and prevented investors from making informed investment decisions.”

In its defense, the Canadian startup said that the SEC does not have any solid proof to back up its allegations. The startup rather says that the SEC has taken the matter out of context, and has badly presented them to fit them with the allegations. The startup thinks that the U.S. SEC lacks any solid evidence to support its claim.

Kik was released back in 2009, and very quickly it climbed up the success ladder to become one of the tops used apps in the app store. It especially made its mark in the United States and attracted around 300 million users from the country. The majority of the user base of Kik comprises of teenagers.

Kik’s focus on the crypto sphere started taking pace two years ago with the launch of its native token KIN. Through the ICO of KIN, it raised 100 million U.S. Dollars. This has made the crypto rise to fame with 600K active investors of the coin every month, thus making the crypto coin the most sort after crypto coin. On this, Ted Livingston had the following to say,

Two years ago we set out to build a new economy that offered equal opportunity to billions of people. Today millions of consumers and hundreds of developers have come together to build this better future with Kin.

Despite SEC’s allegations and the ongoing legal matters on the company, Livingston says,

But no matter what happens to Kik, Kin is here to stay. Kin operates on an open, decentralized infrastructure run by a dozen independent companies. Kin is a currency used by millions of people in dozens of independent apps. So while the SEC might be able to push us around, taking on the broader Kin Ecosystem will be a much bigger fight. And the Ecosystem is close to adding a lot more firepower.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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