After shutting down Kik, the company’s CEO has vowed to continue its fight with the U.S. SEC over its native cryptocurrency kIN, which was the catalyst for pressure from the U.S. regulator.
September 26, 2019, | AtoZ Markets – The head of Canadian social media and messaging app Kik says he’s prepared to drive the company into bankruptcy in a fight with the U.S. Securities and Exchange Commission (SEC) over the future of its Kin cryptocurrency.
According to a Sept. 25 report from Global News, Kik founder and CEO Ted Livingston told an audience the Elevate Conference in Toronto on Wednesday:
“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,”said Livingston.
His comments come two days after he announced that Kik Interactive would cut down its workforce from 151 to 19, shut down its instant messaging app Kik, and focus all efforts on the Kin cryptocurrency that it launched in 2017.
KiK ready take on the SEC in court
Back in 2017, Kik raised $100 million in an initial coin offering (ICO) via kin tokens. The U.S. securities regulator believes that the company issued unregistered securities, while Livingston maintains that the currency rollout was not a security offering. Kik also wants to test if the SEC has jurisdiction over Kik as it is the Canadian company.
Livingston is left with no choice but to fight to win the legal battle, stressing that if the Kin cryptocurrency will be categorized as a security, cumbersome regulations will mean it is no longer workable, and the company would have no way to make money.
“Those are the two options it came down to, so when we looked at that, we said, ‘We feel very confident that we are correct. We need to fight,” he said.
Kik hopes to go to trial as soon as May 2020, he revealed. In the meantime, the SEC’s action has slowed adoption of Kin and restricted trading — even though roughly 60 apps do still use the token, according to Livingston.
The CEO said that he remains committed to Kin because he sees such tokens are the only way to tackle an ever-increasing concentration of wealth as well as the prevalence of monopolies:
“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.”