At its optimal, Kik’s messaging application had thousands of countless registered individuals and also the business made a private market valuation of $1 billion, placing it in the elite ranks of tech unicorns. Now, Kik is shutting down its conversation application after a fight with regulators. Kik Interactive revealed late Monday that it’s shuttering the messenger application and reducing its staff from over 100 people to just 19 employees. The business will certainly concentrate its remaining sources completely on expanding its cryptocurrency, Kin, the subject of a recent lawsuit submitted by the Securities as well as Exchange Commission.
The SEC took legal action against Kik in June for raising about $100 million in an ICO, or first coin offering, without correctly signing up the offering. In an article Monday, Kik CEO and also founder Ted Livingston claimed the legal fight with the SEC has actually been “a lengthy and expensive process to drain our resources.” The SEC declined to comment for this story. When the app would close down, Kik shut down did not respond to a request for comment on.
It expanded together with various other prominent messaging applications, consisting of WhatsApp, Facebook Messenger, Telegram and Line, but the privacy attribute ended up being a double-edged sword. Headlines showed up on how youngster killers called minors with the anonymity as well as the application feature hurt police’s capability to track bad guys.
SEC test with the resources
Since 2016, Kik had 300 million signed up individuals. It no more bursts out its number of energetic customers. Livingston started the adjustments would reduce the business’s shed price by 85% and put it “in position to survive the SEC test with the resources.” The SEC has been cracking down on initial coin offerings over the previous 2 years. In remarks in a Senate banking committee hearing in February 2018, SEC chairman Jay Clayton claimed that those raising ICOs were “in the crosshairs of our enforcement provision.”