Messaging app Kik shutting down as firm focuses on Kin, its cryptocurrency • TechCrunch

Up to date with remark from Kik

Kik Interactive CEO Ted Livingston announced today that the corporate is shutting down Kik Messenger to give attention to its cryptocurrency Kin, the goal of a lawsuit filed by the Securities and Trade Fee. The corporate’s staff might be lowered to 19 individuals, a discount that can have an effect on greater than 100 staff, because it focuses on changing extra Kin customers into patrons.

“As an alternative of promoting a few of our Kin into the restricted liquidity that exists at this time, we made the choice to focus our present sources on the few issues that matter most,” Livingston wrote in a weblog put up, including that the adjustments will cut back the corporate’s burn charge by 85%, enabling it to get by the SEC trial.

In an e mail to TechCrunch, an organization spokesperson mentioned “We will affirm that the Kik Messenger app might be shutting down. Particulars on timing and the consumer expertise by that course of might be shared within the coming days.”

Kin launched two years in the past, raising nearly $100 million in its ICO, one of many first held by a mainstream tech company.

However in June, the SEC filed a lawsuit against Kik Interactive, claiming the ICO was unlawful, as a part of the Fee’s wider crackdown on corporations it alleges are issuing securities illegally.

The SEC additionally claimed that the corporate’s administration had predicted Kik Messenger would run out of cash by 2017, when it began planning the launch of Kin. Kik Interactive hit back in a court filing last month, saying that the SEC’s claims about its funds had been “solely designed for misdirection, thereby prejudicing Kik and portraying it in a unfavourable gentle.”

One of many core points within the lawsuit is whether or not or not Kin is a safety. The SEC alleges that it’s and that the token sale violated securities legal guidelines. Kik Interactive denies Kin is a safety.

“After 18 months of working with the SEC the one alternative they gave us was to both label Kin a safety or combat them in courtroom. Changing into a safety would kill the usability of any cryptocurrency and set a harmful precedent for the business,” Livingston wrote in at this time’s weblog put up. “So with the SEC working to characterize virtually all cryptocurrencies as securities we made the choice to step ahead and combat.”

Livingston added that as a result of Kin isn’t out there on most exchanges, it doesn’t depend on speculative demand. As an alternative, Kin is utilized by “thousands and thousands of individuals in dozens of impartial apps,” with greater than two million month-to-month lively customers and 600,000 month-to-month lively spenders, he wrote. Kik Interactive’s goal now’s to extend these numbers.

To get extra individuals who purchase Kin to make use of the foreign money, Livingston mentioned the corporate will give attention to three issues: enabling the Kin blockchain to help a billion shoppers making a dozen transactions a day, with affirmation instances of lower than a second; rising adoption and development for builders who use Kin of their apps; and constructing a cell pockets that makes it simpler to purchase and use Kin.

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