Kik, the popular messaging app has been shut down. This was according to an announcement made by the CEO. The announcement added that the company would now focus on its Kin crypto currency. This is part of the company’s effort to cut costs as it engages in a legal tussle with the SEC. The SEC insists that their crypto currency is a security. According to the SEC’s allegations, the company used the proceeds of the ICO as a last-ditch effort to try to save the company, which was on its deathbed.
Further Efforts to Fight the SEC
Besides shutting down the messaging app, the company will also fire 100 employees, leaving only 19 essential staff. Additionally, the company will now start to focus its attention on turning users of the Kin coin into buyers of the Kin coin.
When the SEC pursues most companies over cryptocurrency, they usually agree to some kind of settlement. However, Kik has taken the ambitious step of slugging it out with the regulator.
While most crypto currencies derive their value from market speculation, the Kin coin does not enjoy this privilege since it is not listed on many exchanges. To grow its value, the company behind it plans to create real-world use. The remaining 19 employees will focus on expanding the possible transactions on the Kin blockchain. Additionally, they plan to build a mobile wallet for the purchase of Kin.