Kik has launched a $5 million crypto crowdfunding campaign to fight the SEC

29 May, 2019 | Updated: 29 May, 2019
by Joeri Cant
News
Kik has launched a $5 million crypto crowdfunding campaign to fight the SEC

The Canadian social media and messaging app company, Kik, has launched a $5 million crypto crowdfunding campaign, to fight the U.S. Securities and Exchange Commission in court.

Ted Livingston, CEO of Kik and the founder of the Kin Foundation, and Patrick Gibbs, partner at Cooley, announced on the UnChained Podcast, with Laura Shin, the launch of the crypto crowdfunding campaign at Coinbase Custody to fight the SEC in court, in the hope that a lawsuit will eventually result in a new Howey test for crypto tokens.

The Defendcrypto.org website, setup to allow supporters to contribute to the fundraising efforts, states that 'the SEC has been shaping the future of crypto behind the scenes with settlements that set a dangerous precedent and stifle innovation.'

The website allows donation options in 19 different cryptocurrencies, including BTC, ETH and XRP.

However, $5 million might not be sufficient to fight the US SEC in court according to the KIK founders.

'With the future of crypto on the line, $5MM might not be enough. That's why we're calling on others to contribute to the Defend Crypto fund.'

Kik, which is a hugely popular messaging application which entered the world of cryptocurrency in 2017 with a $100 Million ICO, has been pointed to by the SEC as being a possible security and the regulator may seek an enforcement action against the firm.

However, the Canadian social media and messaging app company decided to fight it’s ICO’s designation in court in an effort to stave off regulation of its Kin cryptotoken, hereby possibly creating a legal conflict which could have significant ramifications for the near future of ICOs and crypto at large.

According to the founder of Kik, Kin is a currency and therefore couldn’t possibly be declared 'an unregistered security', adding that 'Kik and the Kin Foundation are prepared to litigate' if the SEC chooses to enforce their decision.

Litigation may be exactly what the cryptocurrency space needs in order to set a precedent for future circumstances.

This belief is echoed by Chris Burniske, a partner at venture firm placeholder VC, who tweeted in February, that a fight with the SEC would be 'pivotal for crypto regulation in the US.'

Apparently all this commotion with the SEC, has its upsides as well.

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