Kik Interactive is shutting down its youth-popular messaging application that allowed individuals to interact and exchange conversations with strangers.
Reportedly, the decision to shut the application is inspired by the lawsuit the US Securities and Exchange Commission (SEC) filed against the company in June over its 2017 digital token sale without properly registering the offering.
The illegal sale raised $100mn.
“Becoming a security would kill the usability of any cryptocurrency and set a dangerous precedent for the industry,” Company Cheif Ted Livingston said. “So with the SEC working to characterize almost all cryptocurrencies as securities we made the decision to step forward and fight.”
The company has also downsized to just 19 to cut back on expenses to be able to battle the lawsuit against them.
Going forward, Kik will focus on its cryptocurrency and will make an effort to turn “Kin users into Kin buyers.”
The remaining employees will work on the Kin blockchain and on creating a wallet so that individuals can purchsase the cryptocurrency.
Kik started to appear in headlines despite its growth for being used by child perverts who easily contacted minors via the application using an anonymity feature making it very difficult to identify perps.
Stay tuned to Brandsynario.
