Blockchain Association To Manage Kik’s ‘Defend Crypto’ Crowdfunding Campaign
Canadian based instant messaging app provider Kik is partnering with Blockchain Association in a deal that will see the latter take over the management of Defend Crypto crowdfunding campaign.
The move was necessitated by Kik’s resolve to reach as many crypto enthusiasts as possible, CoinDesk reports.
On Friday, Blockchain Association and Kik stated that the Washington D.C. based lobbyist group will spearhead the ‘Defend Crypto’ crowdfunding campaign which was kicked off by Kik to raise money to fund the ongoing legal battle with the U.S. Securities and Exchange Commission.
Change Of Plans
According to the deal Kik will keep the $5 million that had originally given out towards the funds. However, the rest of the funds, about $1.9 million, will be used to fund other crypto projects facing similar challenges. Kik also announced its intention to donate extra $500,000 worth of Kin tokens to boost the fund.
The deal signifies a departure from the original aim of crowdfunding campaign. During the launch of the campaign, all the money raised was supposed to fund Kik’s legal battle with the SEC. This is what the campaign’s website read on June 24:
“Once the case against Kik is resolved, all remaining funds, including any portion of the initial $5 [million] contribution by Kik, will be allocated to a nonprofit organization to be used for other initiatives that help with innovation in our industry.”
But, following the deal, Kik said that if the initiative is for the prosperity of the entire industry it was important for firms and individuals to cooperate. “if we are going to Defend Crypto, we need to do it as a collective,” read part of the announcement.
According Kik’s spokesperson, Tanner philp, the lobbyist group was selected to spearhead the campaign because of its marvelous advocacy work for the crypto space. Philp said:
“The Blockchain Association will be in the best position to objectively allocate the resources to the highest impact initiatives.”
According to Kristin Smith, the head of the lobbyist group insisted that her organization will continue defending crypto based startups on all legal matters.She said:
“As stewards of the Defend Crypto fund, we will establish a structure to participate in legal proceedings that will have an outsize, positive impact on the entire crypto ecosystem.”
Smith was categorical that the authorities need to come up with clear and precise regulations to guide both companies and consumers in the crypto ecosystem. Pointing at the battle between Kik and SEC, Smith said that the complaint will help bring regulatory clarity for crypto projects. Smith also stated that the fund will help in constructive engagement with the legal administration for the benefit of crypto based startups.
Kik is facing a legal battle after the SEC accused the firm of violating federal law after conducted a token sale in 2017. Kik refuted the assessment and made the accusation public and now the case is under federal justices. Keep it here for a follow up on the case proceedings and determination.
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