Kik to Close Messenger and Lay Off 70 People

CEO Ted Livingston doesn't want to go to jail, he said
24 September 2019   250

The Canadian company Kik Interactive, the developer of the Kik mobile messenger, will cut 70 employees of the cryptocurrency division, Calcalist reports.

Kik CEO Ted Livingston wrote in a blog post that the company will close the messaging app and reduce the team to 19 people to focus on developing the Kin token ecosystem.

According to Livingston, the decisions taken will reduce the average monthly cost of the company by 85%. This will provide an opportunity to accumulate financial resources to continue the litigation with the US Securities and Exchange Commission (SEC).

The American regulator sued the company, accusing it of conducting an unregistered sale of securities during the ICO in 2017. According to the SEC, the Canadian startup did not provide investors with relevant information for which they were entitled, and the ICO itself was a way for the company to improve its financial situation. According to the results of the token sale, Kik raised $ 98 million.

At the time of writing, Kin's market capitalization is about $ 6.7 million; against the backdrop of news, the token has fallen by almost 30% over the past 24 hours.

According to CoinDesk, Livingston is ready to leave the company for fear of a lawsuit with the SEC.

I have my ticket. I’m not going to jail for this.

Ted Livingston

CEO, Kik

He reported this in an erroneously sent message, which he then deleted.

TON Launch to be Postponed to 30.04.2020

Investors, that are not happy with this fact, may receive 77% of their investments
17 October 2019   82

Telegram is ready to postpone the launch of the Telegram Open Network (TON) blockchain platform and suspend all operations with the Gram digital currency. At the same time, the company intends to challenge the lawsuit of the US Securities and Exchange Commission (SEC). The lawyers of Telegram notified the court of the Southern District of New York.

We had intended to launch the TON network in late October. However, the recent SEC lawsuit has made that timing unachievable. We disagree with the SEC’s legal position and intend to vigorously defend the lawsuit. We are proposing to extend the deadline date in order to provide additional time to resolve the SEC’s lawsuit and work with other governmental authorities in advance of the launch of the TON network.

TON Team

At the same time, CoinDesk reports that the project investors received a letter with information about the proposed transfer of the TON launch from late October to April 30 next year.

At the same time, the company must approve the decision on the transfer with investors. Each of the groups of investors who bought Gram tokens during two rounds of ICO will have to approve it separately.

Investors of the second round are invited to fill out the appropriate form before October 23. If the majority refuses to sign, they will be returned “about 77%” of the investment. It is reported that investors of the first round received a separate letter.

In the event that the majority still approves the launch transfer, Telegram plans to send another $ 80 million for the development of TON.