Defend Crypto
UPDATE: Kik has filed their Answer to the SEC Complaint, spanning
130 pages and refuting the allegations paragraph-by-paragraph. You can
read the response in full here:
Answer to Complaint US Securities and Exchange Commission v. Kik Interactive Inc.
The SEC has been shaping the future of crypto behind the scenes with
settlements that set a dangerous precedent and stifle
innovation.
Kik is unwilling to let that happen and has created DefendCrypto, a fund dedicated to
supporting legal initiatives that impact the crypto industry. It is not just
Kik that is impacted by the regulatory uncertainty. Many other projects are
facing pressure behind the scenes, and many do not have the resources to
fight and are being forced to simply fold and walk away. That is why Kik,
along with other contributors, have already donated $2MM to assisting other
projects that are dealing with fights of their own, and is calling on others to do the same.
In order to assure that DefendCrypto is governed fairly, all use of proceeds will be overseen by
the Blockchain Association, which
is an organization advocating for innovation and collaboration
in this pivotal new industry.
Want to contribute?
1. Choose a currency from the list below.
2. Copy the
Coinbase
address displayed.
3. Send crypto to that address and see your contribution reflected in the table below.
$1,267,475 contributed so far
#1
Bitcoin (BTC)
$802,045
#2
Ethereum (ETH)
$323,916
#3
Kin (KIN)
$137,756
#4
USD Coin (USDC)
$1,510
#5
EOS (EOS)
$885
#6
Litecoin (LTC)
$618
#7
Dai (DAI)
$360
#8
Ethereum Classic (ETC)
$183
#9
Basic Attention Token (BAT)
$68
#10
Stellar (XLM)
$63
#11
0x (ZRX)
$33
#12
ZCash (ZEC)
$28
#13
Augur (REP)
$9
#14
Atomic Coin (ATOM)
$0
#15
ChainLink (LINK)
$0
#16
Civic (CVC)
$0
#17
Dash (DASH)
$0
#18
Decentraland (MANA)
$0
#19
district0x (DNT)
$0
#20
Golem Network Token (GNT)
$0
#21
Loom Network (LOOM)
$0
#22
OXT (OXT)
$0
#23
Ripple (XRP)
$0
#24
Tezos (XTZ)
$0
What’s happening?
On June 4, 2019, the SEC filed an enforcement action against Kik for its 2017 distribution of
the KIN token. This comes after months of Kik trying to find a reasonable settlement that wouldn’t
severely impact the project and everyone in the space.
In January 2019, Kik came out publicly to share what has been going on
behind the scenes
with the SEC. At that time the SEC was asserting claims against Kik and the Kin Foundation,
but the recent enforcement action only cites Kik and its role in the distribution of Kin in September 2017.
That is a big step forward as it shows that Kin today - which is earned and spent by over 500k people per
month - is not a security. But it still does not give clear guidance on how decentralized networks should
be launched and put in the hands of consumers.
This has been a burden for not just Kik, but many others in the space who are optimizing for regulation
before innovation. So Kik is going to take on the SEC in court to make sure there is a foundation for
innovation going forward. Many others are on the path to do the same, and will need our support.
Why does it matter?
For the future of crypto, we all need Kik to win. This case will set a precedent
and could serve as the new
Howey Test
for how cryptocurrencies are regulated in the United States.
This may be the first case but it won’t be the only case. That’s why we set up the Defend Crypto fund,
to ensure that the funds are there for the industry to work together to do this the right way.
Kik has already spent over $6MM taking on the SEC and has committed another $5MM to help bring
the regulatory clarity the industry needs to light. There are many others facing pressure behind
the scenes that don't have the resources to take a stand, so Kik has also committed an additional
$2MM to help those take on their own important fights.
What can you do?
If you too are fed up with this innovation tax, we encourage you to contribute also as we take on the SEC on behalf of the future of crypto in the US. Any contributions will be allocated to initiatives that promote regulatory clarity and allow for responsible innovation.
Who’s Behind Defend Crypto
Join the Movement
If you want to receive email updates about the latest breaking news in the fight to defend crypto or want to find more ways to get involved, fill out the information below and let us know.
How We Got Here
The SEC first reached out to Kik three days after the token sale, and since then Kik has continued to comply with all of their requests and work hard to find a path forward with the SEC.
Despite the regulatory overhang, the Kin ecosystem continues to grow with more and more developers building with Kin, and more and more people using Kin as a currency.
Below is a timeline of events going all the way back to the token sale. During this entire time, Kik has been trying to find a reasonable settlement but has been unable to do so.
- September 12, 2017Kin Token Sale
2.5k+ people using Kin in Kik - September 15, 2017SEC sends first inquiry
- December 20175k+ people using Kin in Kik
- January 18, 2018SEC issues first subpeona
- February 6, 2018Kin gives a presentation to the SEC
- March - July 2018SEC issues 8 more subpoenas
- July 201810k monthly active spenders
- July 2018SEC calls for first testimony
- October 201830 apps live with Kin
- August - November 2018SEC calls for 9 more testimonies
- November 201850k monthly active spenders
- November 16, 2018SEC issues Wells Notice
- December 10, 2018Kin responds with Wells Submission
- December 21, 2018SEC meets with Kin to discuss Wells Submission
- January 27, 2019Kin publishes Wells Notice and Response
- January 2019SEC reaches out to discuss settlement
- February 201940 apps live with Kin
100k monthly active spenders - February 12, 2019SEC requests more documents
- March 29, 2019Kin gives another presentation to the SEC
- April 3, 2019SEC issues ‘Digital Assets Framework’
- April 2019200k monthly active spenders
- May 2019SEC gets an extension in the Wells process
- May 2019300k monthly active spenders
- June 4 2019SEC issues formal complaint
- June 2019400k Monthly Active Spenders
- August 7 2019Kik files Answer to SEC Complaint
FAQs
Do I have to send from a Coinbase address?
No. The Defend Crypto fund is held in a Coinbase account but you can send from any wallet or exchange.
How will I know that you are using the funds as you say?
There will be open and transparent disclosures on how funds are spent, which is intended to be used in the legal case against Kik initially. Although detailed legal bills will not be shared because they contain privileged information, summaries and amounts billed will be published on a monthly basis.
Is my contribution anonymous?
Yes. All contributions are anonymous by nature. The email sign up is not specifically tied to contributions.
If I contribute, will it affect my project legally?
If you’re worried about being targeted because of your contribution to this defense fund, all contributions are anonymous and not disclosed publicly.
Additional Information
Unchained: Kin Sets up $5 Million Defence Fund to Take on the SEC
Off the Chain: Ted Livingston, CEO of Kik: Defending Crypto
ARS Technica: New SEC lawsuit could decide the fate of dozens of blockchain projects
WSJ: Are ICO Tokens Securities? Startup Wants a Judge to Decide
A16z: Kik and the SEC: What’s Going On and What Does it Mean for Crypto?
Crowdfund Insider: Breaking Down Kik’s Fight Against the SEC and their $100 Million ICO
Crypto News: A Legal Battle Every ICO Project Must Follow: Kin vs. SEC
Alt-M: Protecting Innovation: The Kin Case, Litigating Decentralization, and Crypto Disclosures
Circle: Our take: Interpreting recent signals from US regulatory agencies
Questions and press inquiries: info@kik.com
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