On October 15-17 in Amsterdam, hear from top experts as they discuss the industry’s future. But don’t worry, there’s plenty of other messaging apps that aren’t embroiled with the SEC.Ĭome say hi to the Hard Fork team at our blockchain event. If you use Kik to, y’know, actually talk to people, this news will surely suck. The SEC’s decision will likely then stand to affect digital currencies which are delivered by consortia, like Facebook’s Libra. Kin operates on “decentralized infrastructure run by a dozen independent companies,” Livingston said in the blog post. However, it’s probably unrealistic that the SEC’s decision will affect true Proof-of-Work cryptocurrencies like Bitcoin. Given the precedent that the SEC’s decision could set, Kik said the fund was important for the future of the industry and not just its own battle. According to the Defend Crypto website, over $1.6 million has been donated to date. Kik’s decision to focus on increasing sales of Kin may only exacerbate problems if the SEC persists with its assertion that Kin is a security.īack in May this year, Kik setup the “ Defend Crypto Fund” to help pay for its legal battle with the SEC. It doesn’t look like Kik is learning from this whole debacle either. The SEC started going after Kik last year after it concluded its initial coin offering was more security than cryptocurrency.īetween May and September 2017, Kik sold Kin tokens to over 10,000 investors all over the world, raising around $100 million in the process.Īccording to court documents filed by the SEC, Kik allegedly marketed Kin tokens as an investment and told investors that rising demand would drive up the value of the “cryptocurrency.” Livingston also later Tweeted claiming the texts were false. However, according to a recent statement from General Counsel for Kik, Eileen Lyon, this is false and the texts were from an impersonator. CoinDesk reported that the CEO sent a confusingly misdirected text message in which he allegedly said he was “fed up with this shit,” and that he would quit as CEO. What’s more, it was reported that Livingston might also be going the same way as the app. While Kik is dying, Kin will live on – for now. It seems that Kik is stripping itself back to the bare essentials to continue to fight the SEC’s claim that its Kin token is a security and not a currency.
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