Coinbase Custody Announces Secure Storage of Kin Mainnet, Amid Debate Between SEC and Kik CEO
Coinbase Custody has had a lot of success lately, causing them to announce multiple new additions to their platform. Along with announcements of adding XYO to the network, Coinbase Custody published a blog to announce the secure storage of Kin’s mainnet. Presently, KIN is in the process of migrating from the ERC20 blockchain that it was built upon to its own mainnet.
Holders of KIN will be able to use Coinbase Custody for their offline storage platform and insurance coverage. Coinbase Custody is considered a Qualified Custodian, based on approval from the New York Department of Financial Services, which means that KIN holders can operate in New York as well.
Recently, there was some debate over whether this KIN token would be considered a security. The native token of Kik, a messaging service, was supposed to be discussed between the SEC and CEO Ted Livingston. Livingston stated that he intended to fight back against the SEC, which said that Kin should be considered as an unregistered security, which The Block reported.
Though Livingston does not appear to understand the meaning of a security, according to multiple publications and even lawyer Stephen Palley. As a reminder, a security is considered an “investment of money in a common enterprise with an expectation of profits solely from the efforts of the promoter or a third party,” said Palley. Even though the utility of the token could be important to note, it is not the only factor.
By Coinbase accepting the KIN mainnet, there is a possibility that they do not see a conflict continuing to arise with the SEC. The Kik platform maintains that KIN is a utility token, which would not require SEC oversight. However, at least for now, the debate is ongoing, so only time will tell what the SEC ultimately decides to classify the token as, and how Coinbase Custody decides to handle the circumstances.
Investors that want to store their mainnet KIN can open a Coinbase Custody account by clicking this link: https://institutional.coinbase.com/institutional-interest/s/
Presently, KIN is trading at $0.00043, with a loss of just under 1% in the last 24 hours.
Live Kik (KIN) Price:
1 KIN/USD =$0.0002 change ~ 0.73%