Canadian messaging platform Kik had previously raised about $100 million in an ICO for its native cryptocurrency, Kin, on the Ethereum blockchain. However, the U.S. Securities and Exchange Commission [SEC] recently accused the instant messaging platform of conducting an unregistered token sale. In fact just two days ago, Founder of Kik Messenger, Ted Livingston, published a blog post revealing that the company would be closing for good.
The reason, Livingston cited, was that the SEC allegedly wanted Kin to be more of a security. However, Livingston wrote that doing so would destroy the use cases of Kin as a cryptocurrency. The company will now solely focus on ways to persuade users of Kin to become its buyers.
The Canadian Press reported today that during the Elevate conference in Toronto on 25 September, Livingston addressed the same. He elaborated on his fight with the SEC over the destiny of Kin. He said,
“We have to keep going. Until that’s it, we don’t have a dollar left, a person left. We will keep going no matter how hard it is.”
Livingston suggested that the company was left with limited options and had to fight the SEC. If the company had agreed with the SEC and decided to label Kin as security, the digital asset would then drown in regulations. This would in turn, kill the usability of the coin and stop the company from making any money. Livingston further asserted,
“We feel very confident that we are correct. We need to fight.”
According to Livingston, only 60 apps still use Kin as the SEC has deterred the adoption and trading of the cryptocurrency. In spite of the SEC’s motives to slow down the entire process, the company is anticipating trial by next May, he added.
Previously, the company announced shrinking down to just 19 employees, with all these employees requiring to encourage people into buying the cryptocurrency.
Additionally, Livingston highlighted the importance of cryptocurrencies and said,
“Cryptocurrencies are the only way, the only tool we have now that we can counteract that, where we can build a new economy with a new form of money where we can rewrite the rules for how wealth and value is created in a global society.”