KIN Drops 35% After CEO Ted Livingston Announces KIK Shut Down & Pivoting to KIN
- Kin Ecosystem growth has more than made up for the Kik losses, he said
Kik Interactive CEO Ted Livingston announced Monday in a company blog post that the company will be shutting down its core messaging service, following the news of its crypto-focused subsidiary Kin laying off 70 employees.
Talking about the ongoing dispute with the US Securities and Exchange Commission, he said, SEC is behind its decision to shut down the doors.
Focusing on Kin Token
In addition to shutting down the app, they will also reduce the headcount to just 19 people team and focus on converting Kin users into Kin buyers.
Kin, he said “is the most used cryptocurrency in the world. By far.”
These decisions together will drop its burn rate by eighty-five percent, allowing the company to get through the SEC trial.
“Kin has over 2,000,000 monthly active earners, and 600,000 monthly active spenders,”
“While losing Kik will have a big impact on these numbers, the continued growth of the Kin Ecosystem has more than made up for it.”
Kin, that operates on an open, decentralized infrastructure however, he ensures is here to stay.
The core developer team will focus on developing KIN token, a currency he said is used by millions of people and
“while the SEC might be able to push us around, taking on the broader Kin Ecosystem will be a much bigger fight. And the Ecosystem is close to adding a lot more firepower.”
The dispute with the SEC is over the 2017 initial coin offering (ICO) of its KIN token that raised $100 million which SEC claims was an unregistered securities offering.
Ontario-based Kik claimed dealing with the SEC cost the company $5 million.
Since SEC first put allegations on the company, Kin token dropped from $0.000036 to $0.000008 as of today, as per Coincodex.
In the past 24 hours, KIN lost 35 percent of its value.