Kin Foundation, one of the main powerhouses behind the development of Kin ecosystem, started an initiative against the United States Securities and Exchanges Commission, a ‘Defend Crypto’ campaign with a $5 million fund alongside Coinbase. The campaign plans to take the SEC to court, with hopes of getting better regulation, a new Howey Test for cryptocurrencies in order to determine which token is a security and which is not.
Additionally, Defend Crypto has its own dedicated website, where the team is requesting contributions to their cause. The website stated,
“Kin is unwilling to let that happen and is setting aside $5 million with Coinbase to take them on in court. But with the future of crypto on the line, $5MM might not be enough. That’s why we’re calling on others to contribute to the Defend Crypto Fund”
While this move gained a lot of support on crypto-Twitter, there were influencers who stood up against this initiative. This includes Preston Byrne, a well-known lawyer in the cryptocurrency space, and Tim Swanson, Founder of Post Oak Labs, who went on to shed some light on Kik, the Canada-based messaging app.
Tim Swanson stated that Kik was a project founded in 2009, the same year as the Facebook-acquired WhatsApp. Swanson further stated that Kik had four funding rounds till 2015, with its “growth flatlined – unable to exit or find new VCs,” adding that it raised $100 million in 2017 through KIN ICO. This ICO was then subpoenaed by the SEC for the possibility of KIN being a securities offering.
“Before you go donate to Kik / Kin’s new self-serving “DefendCrypto” lobbying effort, do a little googling to find out how they talk out of both sides of one’s mouth.”
and another instance, the CEO said “almost nobody should be looking at blockchain”: https://t.co/NptQhyS7DK
but Kik / Kin arguably doesn’t need a blockchain either, at least as shown in their public materials.
— Tim Swanson (@ofnumbers) May 28, 2019
This was followed by Swanson pointing out that the ICO was initially launched on Ethereum, but was later moved to the Stellar blockchain “and then a fork of Stellar.” Tim Swanson concluded,
“There may be a case for “defending crypto” (cyber coins) against legitimately bad laws but that doesn’t appear to be the case here. there is a clear coordinated effort by their high-profile investors to push this meme because they have no ability to liquidate their KIN holdings.”
Nevertheless, Ted Livingston, Founder and CEO of Kik, responded to Swanson’s comment, stating that “many quotes” were taken “out of context” because of which the analysis was incorrect. He added,
“Please go re-watch the original video, or listen to the podcast. These topics are discussed”
Subscribe to AMBCrypto’s Newsletter