Messenger app Kik was valued at $1 billion in 2015. Now it's shutting down.
Kik is pivoting.
The tech "unicorn" will shut down its messaging app to focus on its cryptocurrency, Kin, CEO Ted Livingston announced in a Medium post Monday afternoon.
The move comes after a battle with the Securities and Exchange Commission — a June lawsuit claimed Kik failed to properly register its initial coin offering, which raised $100 million, CNN reports. Kin "is a currency used by millions of people in dozens of independent apps," according to Livingston.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The company could have labeled Kin a security, but chose instead to fight the SEC, Livingston wrote, which has drained its resources. Now, the company's staff will be cut from more than 100 to 19 people, who will focus on a single goal: "getting millions of people to buy Kin to use it."
Launched in 2010, Kik was an anonymous messaging platform that had hundreds of millions of users and once earned a private market valuation of $1 billion, reports CNN.
"But no matter what happens to Kik, Kin is here to stay," Livingston wrote. Read more at CNN.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Taylor Watson is audience engagement editor for TheWeek.com and a former editorial assistant. She graduated from Syracuse University, with a major in magazine journalism and minors in food studies and nutrition. Taylor has previously written for Runner's World, Vice, and more.
-
The Week contest: Airport goodbyes
Puzzles and Quizzes
By The Week US Published
-
'We shouldn't be surprised that crypto is back'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
How the national debt affects your finances
Rachel Reeves has changed the rules, but why does that matter?
By Marc Shoffman, The Week UK Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published