The David vs Goliath Saga of Kin
Kik’s CEO, Ted Livingston, has taken a stand resembling David against the regulatory Goliath that is the U.S. Securities and Exchange Commission (SEC). At the Elevate Conference in Toronto, he expressed unwavering determination, pledging to push forward in the face of adversity, stating, “We will keep going no matter how hard it is.” This raises the stakes in the ongoing drama surrounding Kik’s native cryptocurrency, Kin.
The Legal Tussle
The core of the battle involves the SEC’s allegations surrounding Kik’s $100 million initial coin offering (ICO), deemed unregistered by the regulatory body. The stakes are notably high—if Kin is ruled as a security, this could trigger a hefty regulatory burden that might crumble Kik’s revenue model.
A Fight Worth Fighting
Livingston believes they have a strong case. “We feel very confident that we are correct. We need to fight,” he noted, showcasing a blend of optimism and defiance. The company hopes to resolve the matter in trial come May 2020. How’s that for marking your calendar!
Impact on Kin Adoption
Despite the ongoing legal strife, about 60 apps continue to utilize the Kin token, though the SEC’s actions have undoubtedly hindered broader adoption. As Kik tries to rally remaining resources, the challenge is in knitting a winning strategy around Kin in such a tightening landscape.
Facing Harsh Realities
The battle has not come without casualties. Kik revealed its painful downsizing, slashing its workforce from a robust 151 to a mere 19 employees, emphasizing revenue insufficiencies as the trigger for this distressing decision. The focus now shifts to revving up efforts to court investors and promote the Kin cryptocurrency.
The Vision for a New Economy
When discussing the broader vision for Kin, Livingston believes cryptocurrencies like Kin can help combat the escalating concentration of wealth and looming monopolies. “Cryptocurrencies are the only way we can build a new economy with a new form of money where we can rewrite the rules for how wealth and value is created in a global society,” he argues fiercely. It’s hard not to admire the zeal, albeit with a touch of realism as they navigate these treacherous waters.
