Kin foundation started an initiative called ‘Defend Crypto' along with Coinbase to take the United States Securities and Exchanges Commission to court in lieu of getting fair regulations and a new Henry test to determine which cryptocurrencies can be deemed under the security.
The Defend Crypto initiative had also put a $5 million seed fund along with Coinbase, and launched a website for collecting more funds to push their initiative further. The website has put the following information asking contributions for their cause,
“Kin is unwilling to let that happen and is setting aside $5 million with Coinbase to take them on in court. But with the future of crypto on the line, $5MM might not be enough. That’s why we’re calling on others to contribute to the Defend Crypto Fund”
Is Defend Crypto Another Marketing Scam?
While the initiative gained a lot of attention and support on Twitter, there were many influencers who stood against this movement. Some of the noted influencers who are against the Defend Crypto movement includes the likes of Preston Byrne, a well-known lawyer in the cryptocurrency space, and Tim Swanson, Founder of Post Oak Labs.
Tim Swanson went on to shed some light on the Kik messaging app and the KIN ICO stating that the KIK messaging app which was started in 2009, the same time when Facebook acquired Whatsapp saw four funding rounds in 2015. The progress of the messaging app declined in the coming years and the messaging app looked to die out soon.
However, the founders behind the KIK messaging app went on to raise $100 million in 2017 through the KIN ICO. But SEC summoned them on the possibility of KIN being a security offering and not having the required decentralization in its operation. KIN foundation believed that SEC was unnecessarily halting their project, but Swanson believes otherwise.
“Before you go donate to Kik / Kin’s new self-serving “DefendCrypto” lobbying effort, do a little googling to find out how they talk out of both sides of one’s mouth.”
Swanson went on to reveal the irregularities by the KIN ICO where it was first launched on Ethereum but was later moved to Stellar blockchain and then later to the fork of the Stellar blockchain. He went on to claim that defending crypto might be a big cause for many in the decentralized space, but it was certainly not the case for KIN.
“There may be a case for “defending crypto” (cyber coins) against legitimately bad laws but that doesn’t appear to be the case here. there is a clear coordinated effort by their high-profile investors to push this meme because they have no ability to liquidate their KIN holdings.”
Tim Swanson believes that the Defend Crypto initiative was only started to take the attention away from the loopholes and wrongdoings of the KIN foundation. He also dug out a few of Livingston's earlier tweets and highlighted how the initiative and his behavior were in total contrast. One of Swanson tweets highlighted,
“for instance, the CEO (@ted_livingston) during the pre-sale highlighted how Kin “will become super valuable on day one”
Another tweet of his read,
“and another instance, the CEO said “almost nobody should be looking at blockchain”:
but Kik / Kin arguably doesn't need a blockchain either, at least”
Ted Livingston, Founder, and CEO of Kik responded to the allegations made by Swanson and said that many of his quotes were taken out of context. Ted claimed that people can go and watch his initial videos as well as listen to his podcast appearances to get a clearer picture.