Popular social network and messaging app, Kik, will be shutting down the service permanently. This was made known in a recent post by the company’s CEO Ted Livingston, who announced that the firm will now kill the app, significantly reduce the company’s staff strength to just 19, as well as place its entire focus on its digital asset, the Kin (KIN), “converting Kin users into Kin buyers.” Reports have it that the company has already given 70 of its employees a layoff notice and also given them the opportunity to move to a new undisclosed company in the same industry.
According to the CEO’s message, the move is required because the company will be fighting out its current case with the U.S. Securities and Exchange Commission (SEC). The company has been enmeshed in legal troubles for a while now with the SEC, over an initial coin offering (ICO) which took place back in 2017. The ICO successfully raised $100 million but the SEC maintains that the token is an unregistered security. Since the case started, the company’s Kin token has consistently dropped in value. However, Livingston doesn’t plan to back down.
“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. Becoming a security would kill the usability of any cryptocurrency and set a dangerous precedent for the industry. So with the SEC working to characterize almost all cryptocurrencies as securities, we made the decision to step forward and fight.
Image Source: Ted Livingston Twitter