Kik, a company specializing in the development of instant messengers, plans to challenge the decision of the US Securities and Exchange Commission (SEC) regarding its ICOICO
(Initial Coin Offerings) is an acronym, which means a primary currency offer. Details in 2017, as reported by the CoinDesk news agency.
According to a report in The Wall Street Journal published on January 27, Kik founder and CEO Ted Livingston said he was going to challenge the SEC decision in court.
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ICO of Kin cryptocurrency and SEC
As it became known, Ted Livingston intends to achieve the decision that the tokenToken
– is an accounting unit that is used to represent a digital balance in an asset.Details of Kik Interactive Inc. cannot be considered (prohibit) as a security.
Recall that ICO of Kin cryptocurrency ended in September with a total amount of 98 million dollars. According to the US Securities and Exchange Commission (SEC), Kik Interactive Inc. violated the procedure for registering and informing investors during the ICO period, so the Kin coin is an "illegal security". In the end, the Commission accused Kik of "distributing unregistered securities".
In response to this statement, the head of Kik Interactive Inc. reported that the Kin token cannot be counted among the securities.
"Kin token was conceived as a tool for monetizing the Kik cryptocurrency platform (...) Users of the platform can earn a coin (Kin) in more than 30 mobile applications by performing functional tasks. (...) And the Securities Act of 1934 does not allow for the assignment of currencies to them" – Ted Livingston.
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The final resolution of the ICO of Kin cryptocurrency dispute will be considered in a trial with the SEC. Date of the meeting is still unknown.
Editor: Pereyidenko Ihor