Disclaimer: This report beforehand said that Kik was solely contemplating shutting down its app and has been up to date following new data from Kik.
The Canadian social media and messaging app firm Kik is contemplating shutting down its well-liked Kik messaging app.
70 reported layoffs at Kin subsidiary
In a Sept. 23 article, Israeli tech publication CTech Calcalistit cites two nameless sources at Kik, claiming that the Canada-based agency is contemplating closing down its messaging app.
A subsequent blog post by Kik CEO Ted Livingston confirmed the reviews, stating that the agency will shut down the Kik app, cut back its employees to 19 folks and deal with its Kin (KIN) token’s growth.
70 staff have reportedly obtained layoff notices and have been given the choice to switch to a brand new firm that operates in the identical sector.
Legal troubles
In in the present day’s weblog publish, Livingston stated that Kik’s choices to downsize and shut down its messenger had been the results of the agency’s have to handle sources in a authorized battle with the United States Securities and Exchange Commission (SEC).
Kik has been combating its preliminary coin providing’s designation in courtroom ever because the SEC sued the Canadian startup for an allegedly unregistered $100 million token providing.
Steven Peikin, Co-director of the SEC’s Division of Enforcement, said on the time that by conducting its Kin tokens sale, Kik “deprived investors of information to which they were legally entitled and prevented investors from making informed investment decisions.”
Kik says SEC doesn’t have robust proof
Kik’s attorneys said that the SEC took quotes out of context, twisted info as a way to assist their allegations, and misrepresented the info as a result of they don’t have any robust proof to assist their claims.
In the in the meantime, Kik launched a $5 million crypto initiative to fund its lawsuit in opposition to the SEC, which was taken over by the Blockchain Association, a collective of advocates concerned with the blockchain trade.
Kik believes that the Blockchain Association “will be in the best position to objectively allocate the resources to the highest impact initiatives.”
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