Kik, a popular messaging app for young smartphone users, is shutting down as the company focuses on a legal battle over its cryptocurrency funding round.
The announcement was made late Monday by Kik founder and chief executive Ted Livingston, who said the company would challenge US authorities on how its cryptocurrency, Kin, is defined and regulated.
The decision means a shutdown for Canadian-based app Kik, which claimed to have some 300 million users at its peak and to have been used by as many as 40 percent of US teens.
The company will reduce its staff to 19 and focus on Kin, which Livingston called “the most used cryptocurrency in the world” by consumers.
“These are hard decisions. Kik is one of the largest apps in the US. It has industry-leading engagement and is growing again,” Livingston wrote on Medium.
“Over 100 employees and their families will be impacted. People who have poured their hearts and souls into Kik and Kin for over a decade.”
The company is embroiled in a legal battle with the US Securities and Exchange Commission over its 2017 “coin offering” which raised some $100 million (roughly Rs. 700 crores).