Kik to Close Messenger and Lay Off 70 People

CEO Ted Livingston doesn't want to go to jail, he said
24 September 2019   654

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.

Neo Foundation to Withdraw $11M From Cold Wallet

These funds will be used to finance its operations in currrent reporting year and $190M are stiill in the vault
26 March 2020   890

On March 25, the Neo Foundation announced the withdrawal of 1,660,865 NEO ($ 11 million) from the cold wallet to finance its activities in the current reporting year. About $ 190 million are still in reserves.

According to rules established in the Neo White Paper, the NEO tokens maintained by the Neo Foundation are mainly used to continuously support Neo's technological development, ecosystem growth, community expansion and the normal operations of the foundation and related organizations. 

 

Neo Foundation

According to the publication, 1,660,865 NEOs were transferred “from a blocked account to a current account”. As the information on the blockchain shows, these funds were directed to an address containing 14.6 million NEO or about $ 100 million. The project does not disclose who controls this address and what fate awaits the released tokens.

White paper Neo suggests that project costs in any given year should not exceed 15 million tokens. In the near future, a financial report for 2019 will be published.

At the time of publication, NEO is the 23rd largest asset on the market with a capitalization of $ 479 million. The price of one NEO is $ 6.79.