Weiss Ratings Report: “Outcome of Kik Case Will Have an Effect on the Future of Crypto as a Whole”
As many of our readers already know, Kik recently challenged the SEC over its banning of its KIN ICO by taking the government body to court. In regards to the matter, Weiss Ratings recently released a research piece saying that the “decision that will be doled out by the court” will have a massive impact on not only Kik but also on other crypto projects that make use of a similar underlying framework.
As per a post released via Weiss’ official Twitter handle, the data analytics firm noted:
Messaging app #Kik is going to court after #SEC deemed its #ICO to be an unregistered security. The outcome will set the precedent on how these tokens are regulated. This is similar tech to that of #XLM and #XRP, so the final result may affect these as well.
— Weiss Crypto Ratings (@WeissCrypto) January 28, 2019
More On The Matter
Over the past year or so, the US SEC has been extremely strict with ICO projects and how they carry out their fundraising activities. This, according to the government body is a way of
“protecting investors operating in the cryptocurrency space from scammers”.
However, according to a variety of statistical studies, most companies working within this niche’ domain feel as though the SECs actions thus far have been quite harsh and unwarranted.
In regards to the aforementioned case, it appears as though the folks over at Kik have finally had enough and are taking the SEC to court since they believe that their Kin token offering
“is not a registered investment.”
So, if the court order turns out to be in favor of Kik, a whole host of other crypto businesses will be granted relief since they will no longer be subject to the same rules as conventional investment tools.
The crypto market has been in the midst of a bear run for quite some time now and many people from within this space believe that the introduction of Bitcoin ETFs into the arena could change a lot of things. So in this regard, Kik’s possible victory in court could possibly pave the way for a bitcoin ETF in the near future.