Kik Chat App “Found New Home”, KIN Token Still Depressed
The Kik chat app may have found a new developer team, in another pivot for the beleaguered startup.
The Kik app may not be dead after all, as announced recently by the company’s CEO Ted Livingston. The loss of the Kik chat app was the final blow for the KIN ICO, which relied on the flagship product. Without Kik, the project was left with just the KIN token, which hovered at rock-bottom prices.
But Livingston announced that a team was interested to buy the app and continue developing it, while integrating it with the Kin project.
The KIN token is currently still in use, and actually posting significant daily transactions, based on Blocktivity data. Each day, the KIN ecosystem handles more than 1 million transactions for micro-apps and rewards.
But the plan of Livingston to encourage more KIN buying may not be viable. KIN trades around $0.000008, and is hardly listed on accessible and liquid exchanges. And while KIN may be suitable for an airdrop, it may not be so appealing to buy outright. Still, the news of a new app development team boosted the KIN price from $0.000007.
The decision to sell Kik app arrived just days before the scheduled closing on October 19. Kik X Beta already closed at the end of September.
The Kin project is still under fire, with an ongoing lawsuit against the US Securities and Exchange Commission. The outcome of the lawsuit is uncertain, despite the recent trend for the SEC to settle for a financial fee.
The sale of the KIN token reached 10,000 investors worldwide, and reportedly raised $100 million in Ethereum (ETH) in a mix of private and public placements. Despite the fact that Kik was based in Canada, the SEC found flaws with selling the token to US-based investors, while promising future returns. The KIN token thus fell under the definition of a security, which was sold without previous registration.
The Kik app already faced problems with its runway when the company decided on a pivot through an ICO fundraising.