Kik shutting down
Kik Shuts Down Due to ICO Legal Battle
September 28, 2019
Kik shutting down
Kik Shuts Down Due to ICO Legal Battle
September 28, 2019

Kik, the Canadian social media and messaging application company are considering shutting down its popular Kik messaging app.

It has been reported that in an article published on September 23, CTech Calcalistit, the Israeli tech publication, claims two anonymous sources at Kik, saying that the Canada-based firm is considering closing down its messaging app.

Hence, a consequent blog post by Ted Livingston, the CEO of Kik confirmed the reports, stating that the firm will shut down the Kik app, reduce its staff to 19 people and focus on it’s Kin (KIN) token’s development.

70 employees have reportedly received layoff notices and have been given the option to transfer to a new company that operates in the same sector.

Valid troubles

In a blog post, Livingston stated that Kik’s decisions to diminish and shut down its messenger were the result of the firm’s need to manage resources in a legal battle with the United States Securities and Exchange Commission (SEC).

ALSO READ :  Thailand’s First Regulated ICO Portal Targets $98M Token Offering

Likewise, Kik has been fighting its initial coin offering’s designation in court ever since the SEC accused the Canadian startup of an allegedly unregistered $100 million token offering.

Ted Livingston

Steven Peikin, the Co-director of the SEC’s Division of Enforcement, said that at the time, by conducting its Kin tokens sale, Kik “deprived investors of information to which they were legally entitled and prevented investors from making informed investment decisions.”

Kik says SEC does not have strong evidence

It has been reported that Kik’s lawyers stated that the SEC took quotes out of context, twisted facts in order to support their allegations, and misrepresented the facts because they have no strong evidence to support their claims.

In the meantime, Kik launched a $5 million crypto initiative to fund its lawsuit against the SEC, which was taken over by the Blockchain Association, a collective of advocates involved with the blockchain industry.

Thus, it believes that the Blockchain Association “will be in the best position to objectively allocate the resources to the highest impact initiatives.”

ALSO READ :  Autorité des Marchés Financiers (AMF) Grants France’s First Approval For ICO Application

Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

A Brief Overview On Wrapped Token

A Brief Overview On Wrapped Token

A wrapped token is an ERC-20 token with a value identical to another asset that it represents, either through a smart contract or by being backed one-to-one with the underlying asset. It is an asset hosted on the...

Blockchain in the Tourism Industry

Blockchain in the Tourism Industry

Tourism can be defined as traveling to a place that is different from your home city or country for various leisure or business purposes, and staying there for some considerable period of time at a length. It becomes...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. She is an archetypal writer, who loves to create her own little world with words and locutions. Apart from this, her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!