Canada-based messaging app agency Kik has launched a crypto crowdfunding marketing campaign to assist a possible court docket battle with the U.S. Securities and Change Fee (SEC) over its 2017 preliminary coin providing (ICO).
Introduced by Kik founder and CEO Ted Livingston and Patrick Gibbs, a companion at legislation agency Cooley LLP, on the UnChained Podcast Tuesday, the marketing campaign is being launched within the hopes that “a lawsuit would ultimately end in a brand new Howey take a look at for crypto tokens, to find out which of them are a safety.”
A devoted web site – dubbed Defend Crypto – has already been arrange permitting supporters to contribute to the fundraising effort, that its founders say shouldn’t be solely in assist of Kik however many crypto corporations that face potential motion from the U.S. regulator. The positioning gives donation choices in 19 cryptocurrencies, together with bitcoin (BTC), ether (ETH) and XRP, in addition to much less commonplace choices like augur (REP), DAI and, in fact, Kik’s kin (KIN) token.
Whereas Kik maintains that its token is used as a foreign money, the SEC has expressed issues that kin could be a safety and the regulator could search an enforcement motion in opposition to the agency.
Certainly, SEC chairman Jay Clayton has beforehand stated: “I consider each ICO I’ve seen is a safety.” He added: “I wish to return to separating ICOs and cryptocurrencies. ICOs which might be securities choices, we should always regulate them like we regulate securities choices. Finish of story.”
On the brand new web site, Kik states:
“After months of looking for an inexpensive resolution, Kin has been unable to succeed in a settlement that wouldn’t severely impression the Kin challenge and everybody within the house. So Kin goes to tackle the SEC in court docket to verify there’s a basis for innovation going ahead.”
Arguing that the case would set a precedent for how cryptocurrencies are regulated within the U.S., Kik stated the Defend Crypto marketing campaign would assist make sure the funds are in place “to do that the correct method.” The agency claims it’s already spent over $5 million on the case and is now committing one other $5 million in BTC, ETH, and KIN “to struggle this out on behalf of the business.”
Famous crypto investor Fred Wilson indicated in a weblog publish that he’s already donated to the trigger, and stated: “It’s my hope, and Kin’s hope, that DefendCrypto.org shall be an inspiration for the numerous different essential crypto initiatives which might be silently battling with the SEC to return public and lift capital from the crypto sector for his or her fights.”
Kik is encouraging different supporters to struggle this “innovation tax” by donating cryptos that may held in a Coinbase account and solely be used as soon as Kik’s $5 million has been spent. Unused funds shall be allotted to “different initiatives.”
Livingston advised CoinDesk earlier this month:
“Within the final month alone, over 1,000,000 folks earned kin from 40 completely different apps, from 40 completely different corporations. Over 1 / 4 million folks used kin, making it the most-used cryptocurrency on the planet, and so they’re not even keen to say that’s not a safety.”
Kik picture through Shutterstock