SEC Twists Fact, Kik Messanger Team Says

Kik team prepared and submitted to the court a response to the SEC in a 131-page document, in which it accused the agency of distortion of facts
07 August 2019   481

The confrontation between the US Securities and Exchange Commission (SEC) and the Kik messenger developer company continues. For example, the Canadian Kik Interactive prepared and submitted to the court a response tp the Commission in a 131-page document, in which it accused the agency of fraud and distortion of facts.

Kik claims that the Kin token is not a security, as claimed by the SEC, but is just a token built into the application for buying games, digital products or other services in Kik Messenger.

According to Kik representatives, the Commission must prove that Kin tokens were sold in violation of the Securities Act.

Since Kin is not itself a security, the SEC must show that it was sold in a way that violates the securities laws. The SEC had access to over 50,000 documents and took testimony from nearly 20 witnesses prior to filing its Complaint, yet it is unable to make the case that Kik’s token sale violated the securities laws without bending the facts to distort the record.
 

Eileen Lyon

General counsel, Kik

In particular, Kik notes that the agency quoted selective quotes or took words out of context when drawing up the charge.

In addition, company representatives are confident that SEC’s assumptions about Kik’s unfavorable financial position were included in the lawsuit for the sole purpose of exposing Kik in a negative light.

What really surprised us is just what lengths the SEC went to twist the facts. They cut quotes and [took them out of context] and that’s something we didn’t expect from the SEC.
 

Ted Livingston

CEO, Kik

He also noted that the SEC is trying to create the appearance that the Kin project was an act of despair, and not “than the bold move that it was to win the game, and one that Kakao, Line, Telegram and Facebook have all now followed.”

The SEC sued the Kik messenger developer, accusing her of conducting an unregistered sale of securities during the ICO in 2017.

However, Kik said it was "expecting something like that." It is worth noting that Kik announced the launch of a special fund to cover legal costs during the proceedings with the SEC back in May, since at the beginning of the year the company announced that it intends to challenge the Commission’s decision to recognize the project token as a security.

Chainlink May Sell Big Amount of Own Tokens

According to the experts' research, $30M worth tokens were sold by the ICO team itself
12 August 2019   360

The Chainlink team was suspected of large-scale liquidation of LINK tokens. For a month and a half, the project capitalization decreased by $ 600 million, Trustnodes reports.

On July 6, a recruitment message was posted on the project’s Twitter page, which, according to some observers, was the beginning of the dump.

We do sincerely appreciate our community’s continued support and understanding as we expand the number of people working on Chainlink, and we will of course do our best to ensure that our expansion plans are accomplished responsibly, carefully managing the company's resources, capital and LINK, with a focus on continuing to create an overall positive effect on the Chainlink network over the long-term.
 

Sergey Nazarov (old message in the company's blog)

Chainlink team

Following this message, a schedule was circulated on social networks showing the alleged token sales of 700,000 LINK at each price rebound after reaching a peak at the end of June.

Alleged Chainlink Dump, Aug 2019
Alleged Chainlink Dump, Aug 2019 

According to Etherscan, 14 transactions of 700,000 LINK were made, which totaled 9.8 million tokens, or about $ 30 million.

After going through a small chain of addresses, these tokens were sold on Binance, noted in Trustnodes.

Chainlink Selling, Aug. 2019
Chainlink Selling, Aug. 2019

Observers believe that at the end of June the daily trading volumes of ChainLink on the Binance exchange were artificially boosted. So, with a capitalization of only $ 1.4 billion, this figure amounted to $ 863 million. According to some, the price movement chart for the mentioned period looks unnatural, especially considering that volumes in favor of sales were recorded on one of the green candles. There is a possibility that the unknown wanted to provoke FOMO, but could not achieve the goal.

Some believe that the message about the expansion of the staff was only an attempt to hide the large-scale liquidation of tokens.

It is worth noting that in 2017 Chainlink raised $ 32 million through the sale of 350 million LINK through an ICO. At the same time, the team saved 650 million LINK for the further development of the project.

According to a recent analysis of the ICO market, Chainlink entered the top five most successful ICOs in terms of growth in bitcoin.