You may have heard of the old messaging application Kik. Kik isn’t used as much these days and so unsurprisingly, reports came out this week saying that the firm was going to shut down its product. Furthermore, as covered by Calcalist, Kik has also allegedly sent off 70 notices to employees of cryptocurrency division, Kin. even so, it gave a small portion of said employees a chance to stay and work in a “new company that is based on the same technology.”
In a blog post published on Medium last night, the chief executive of Kik & Kin said that the move was very much real. Ted Livingston made the following statement in the post:
“We will shut down the Kik app. We will reduce our headcount to an elite 19 person team. We will focus on one thing: converting Kin users into Kin buyers.”
In the post, the firm state that after spending a year and a half working with the SEC, the only choice that was given was to either call Kin a security or fight them in court.
“Becoming a security would kill the usability of any cryptocurrency and set a dangerous precedent for the industry. So with the SEC working to characterize almost all cryptocurrencies as securities we made the decision to step forward and fight.”
Following the news, Kin took a bit hit on the charts. Kin is currently trading at $0.000010 following a 19.25% decrease over the past 24 hours.
Maybe Kik should have kept to what they know?
Either way, it will be interesting to see how this situation plays out and what’s going to happen in the coming months with Kin. For more news on this and other crypto updates, keep it with CryptoDaily!