June 16, 2024

Kik app closes due to pressure from SEC

Kik app closes due to pressure from SEC

On Monday, Kik Interactive CEO Ted Livingston announced the closure of the messenger. The reason for thisbecame a protracted dispute with the US Securities and Exchange Commission (SEC).

This is a direct impact of the SEC lawsuit, – Livingston said in an interview with CoinDesk.

In addition to closing the app, the company intends to reduce its staff to 19 developers.

Kik is currently involved in legal proceedingsproceedings with the SEC, the subject of which is the 2017 ICO. During the ICO, the startup managed to sell $100 million worth of tokens, which the SEC claims are unregistered securities. Since the SEC's lawsuit against Kik began in June, the token's price has dropped from $0.000036 to $0.0000105.

Despite this, Livingston noted that the core development team continues to actively work on the KIN token. He continued:

KIN– it is a currency used by millionspeople in dozens of independent applications. So while the SEC may be able to influence us, the fight against the larger KIN ecosystem will be much more serious.