Kin Cryptocurrency within the Offing as Kik messenger Shuts Down
Popular electronic communication app Kik messenger is closing its doors to pave manner for a brand new crypto asset—Kin cryptocurrency.
According to the announcement created by Kik Interactive CEO ted Robert R. Livingston, the corporate would close up the electronic communication service because it focuses on its cryptocurrency Kin, that is presently facing a court case filed by the Securities and Exchange Commission (SEC).
The move can see the company’s hands downsized to nineteen workers and have an effect on quite one hundred employees because the company focuses on turning a lot of Kin users into patrons.
“Instead of marketing a number of our Kin into the restricted liquidity that exists nowadays, we have a tendency to created the choice to focus our current resources on the few things that matter most,” Robert R. Livingston wrote in a very diary post.
He conjointly additional that the changes would cut the company’s burn rate by eighty-five %, to alter it to urge through the SEC analysis.
A Little regarding Kin Cryptocurrency
A project of Canada-based startup Kik Interactive, Kin was established in 2017, because the initial ICO command by a serious school company. Its ICO raised virtually $100 million.
However, in June 2019, matters took a special flip with the SEC filing a court case against Kik Interactive. SEC claimed that the corporate conducted associate degree unlawful ICO, depriving investors of various cash. The SEC conjointly alleged that Kik traveller would become bankrupt in 2017 once the corporate began its plans for launching the Kin token.
In August 2019, Kik Interactive capable SEC allegations in a very court filing, stating that the claims were solely designed for misdirection and to portray the corporate in a very unhealthy lightweight.
Kin isn't a security
In today’s diary post, Kik Interactive CEO Teddy boy Robert R. Livingston wrote:
“After eighteen months of operating with the SEC, the sole alternative they gave the U.S. was to either label Kin security or fight them in court. turning into a security would kill the usability of any cryptocurrency and set a dangerous precedent for the industry….So with the SEC operating to characterize the majority cryptocurrencies as securities we have a tendency to created the choice to leap forward and fight.”
The CEO additional that since Kin isn't obtainable on most thought crypto exchanges, it'd not rely upon speculative demand. Instead, various folks in dozens of freelance apps would use the token. Currently, Kin has quite a pair of million monthly users and 600,000 monthly active spenders. the corporate currently aims to extend those figures.
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