Messaging platform Kik CEO Ted Livingston in a press release announced that the company will shut down its Kik Messenger application. This shutdown is due to the reversal the management of the company has taken in order to realign its resources on its own Cryptocurrency release called Kin. The focus on the Cryptocurrency is due to the lawsuit filed by the Securities and Exchange Commission. This sudden change in course of the messaging app company Kik will reduce the number of employees from 100 to a mere 19. This is because of the company’s short term goal of converting more kin user into buyers.
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Kik CEO Ted Livingston in a blog post wrote that the company is focusing on the current resources and this change will reduce the company’s burn rate to a low of 85 % which will help the company go through the SEC trail. In an email to a company spokesperson said we can confirm that the Kik Messenger app will be shutting down. Details on timing and the user experience through that process will be shared in the coming days.
Image Source: coinpath.io
Kin launched two years ago, raising nearly 100million dollars in its ICO, one of the first held by a mainstream company. But in June, the Security Exchange Commission (SEC)filed a lawsuit against Kik interactive, claiming the ICO was illegal, as part of the Commission’s wider crackdown on companies it alleges are issuing securities illegally. According to the Securities and Exchange Commission, the launch of the Kin Cryptocurrency was a preplanned idea of the messaging company Kik. The SEC also told in a press release to the media that the Kik knew about the weak business finances of the company and had then forged a plan to launch its own Cryptocurrency.
Source: Tech Crunch
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