The SEC - Kik (KIN) Lawsuit gets Interesting
Things just seem to be getting worse for the social media app Kik. Following their impressive ICO, which raised $100M it seems that their luck keeps on heading down hill. Their ICO & KIN token has landed the social media app in a lot of hot water with the SEC.
This prompted Kik to launch a special fund to support their fight with the SEC. The fund received a mixed response from the crypto community, with some claiming on Twitter that the KIN ICO was always questionable.
The Defend Crypto fund has seemingly performed pretty poorly, raising only $4,303,513 in various cryptocurrencies so far. It's hashtag on Twitter also seemingly underperformed. Apparently, some large early supporters also withdrew their support. Circle's logo has seemingly been removed from the website, indicating that they no longer support the project.
The SEC Said What?
The most interesting thing so far in the Kik (KIN) case is not necessarily Kik's future or the future of ICO fundraising. It is a few comments that the SEC has mentioned regarding Bitcoin and Ethereum. It seems that the SEC recognizes Bitcoin and Ethereum as a legal form of payment. As per the court document:
"Kik's September 2017 sale of Kin to the general public was denominated in Ether, and Kik received approximately $50 million worth of this digital asset.
Of the nearly $100 million in cash and Ether received by Kik, over $55 million was raised from United States-based investors."
During Kik's KIN ICO, the only form of payment accepted was Ethereum. While it appears clear that the SEC will declare Kik's KIN token a security, it appears that they view Ethereum and Bitcoin differently.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado