KIK shutting down! Canadian Messenger app KIK shutting down has been rumored for some time now, but according to sources, it’s happening.
In a Sept. 23 article, CTedh, an Israeli tech publication, cited two anonymous sources at Kik claiming that the firm was considering closing their messenger app.
KIK CEO ted Livingston penned a blog post essentially confirming the reports. The company will reduce its staff to 19 people, according to the blog post, and focus on its cryptocurrency development, Kin.
70 employees have reportedly received pink slips and have been given the option to transfer to a new company that is operating in anonymous messaging.
According to Livingston, Kik’s decision to downsize and shut down its messenger was the result of the firm’s need to allocate and manage resources in the legal battle against the United States Securities and Exchange Commission (SEC).
Kik has been fighting for its ICO, Kin, ever since the SEC sued the Canadian start up for allegedly offering an unregistered $100 million dollar offering.
Lawyers for Kik have stated that the SEC has taken quotes out of context and twisted fact to support their allegations. Kik’s attorneys say that the SEC have no strong evidence to support their claims.
In the meanwhile, Kik launched a $5 million crypto initiative to fund its lawsuit against the SEC, which was taken over by the Blockchain Association, a collective of advocates involved with the blockchain industry.
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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