Kik Once Again Counter-Attacks US SEC Over Token Sale Issues
The US Securities and Exchange Commission has misinterpreted the intentions and mechanics of the KIN token sale.
The Canadian chat app producer,Kik, extended its arguments against the US Securities and Exchange Commission (SEC). In a lengthyfiling, Kik explained its rationale on why the KIN token sale in the summer of 2017 was not a desperate attempt and did not sell an unregistered security.
Kik’s arguments are built around the claim that the SEC reading of the case is “misleading and selective”. Additionally, Kik refuted the claims that the KIN token was a security, and instead remarked that even the SEC was not clear in its position about the nature of the digital asset.
The Canadian company also clarified the claims that it was a struggling business, describing its losses as natural to establishing a chat app, especially when competing with larger social networks.
The KIN token currently behaves as a utility digital asset, being used in testing a reward system for viewing ads or completing small tasks. KIN also lines up among the top blockchains in terms of daily transaction capacity, with more than 1.9 million transactions in the past day, based on Blocktivity data. The token, now running on a protocol based on Stellar, allows for free and much faster transactions.
Kik has been rather conservative in promoting the KIN to exchanges, and the asset remains thinly traded. KIN trades at $0.000016, brought down to levels under its ICO price on volumes of only about $709 million. For one of the biggest ICOs in 2017, raising as much as $100 million’s equivalent of Ethereum (ETH), this trading activity looks like a failure. Yet Kik still claims to have a use case for its token, using it as a means of payment within its subsidiary apps.
The KIN token was one of the first large-scale attempts by a social media and chat producer to introduce a digital asset. Within its filing, Kik details the fact that it has eyed digital assets since 2012, and the issuance of KIN was not a last-minute attempt to gain fresh funding. Currently, Facebook is attempting to launch its own digital asset, but is not in a hurry, and even stated the creation of Libra is not guaranteed.