Kik announced shutting down its messenger services while focusing on converting Kin users to Kin buyers. This development was reported on 24 September.
Ted Livingston, Founder, and CEO of Kik and Kin commenced by informing that when it comes to consumer adoption, Kin is the most used cryptocurrency in the world. He sustained by adding that after eighteen months of working with the SEC, the only choice SEC gave was to either label Kin security or fight them in court. Ted emphasized that labeling as security would harm the usability of the cryptocurrency and set an unsuitable example.
Ted conveyed on the gravity of the situation by noting –
“So with the SEC working to characterize almost all cryptocurrencies as securities we made the decision to step forward and fight. While we are ready to take on the SEC in court, we underestimated the tactics they would employ. How they would take our quotes out of context to manipulate the public to view us as bad actors. How they would pressure exchanges not to list Kin. And how they would draw out a long and expensive process to drain our resources.”
Ted further added that instead of selling some of Kin to end up with a scarcity of funding, they made the decision to focus their current resources on the things that matter most. Ted summarized by stating the three key decisions. He added that they would shut down the Kik app, reduce their headcount to a short 19 person team and would focus on converting Kin users into Kin buyers.
Ted noted that these were hard decisions since Kik is one of the largest apps in the US. He highlighted that it has industry-leading engagement and was growing. Ted added that over 100 employees and their families would be impacted. Such folks include those who had poured their hearts and souls into Kik and Kin for over a decade. However, together these changes would drop their burn rate by eighty-five percent, giving them a position to face the SEC trial.
Tanner Philip, Technical Advisor to the CEO at Kik noted the announcement that the fund to defend would be governed by the Blockchain Association. Tanner indicated that since the inception of the fund in May, Kik had been striving to convey its grievance. He emphasized that public contribution to the fund was not for the sole purpose of paying legal bills, rather it was targeted to make the story public.