The United States Securities and Exchange Commission (SEC) and Kik had a conversation regarding filing an opposition against each other’s motions for summary judgment on Friday. While Kik officially claims its offerings were exempt from registration requirements, the SEC asserts Kik’s 2017 initial coin offering (ICO) consisted of a clear violation of securities laws.
Kik records that the SEC has eventually been not upto the mark in providing required evidence that it cultivated the expectations of profits among its potential customers. Kik’s investors entered into a common enterprise with the company.
By contrast, the SEC involves in the arguement that Kik’s ICO completely satisfied the Howey test, with the statement that all Kin tokensale participants “made an investment of money in a common venture. It has been also reported that Ted Livingston, Founder of Kik has been used as a currency since the launch of the company. On this, SEC drops an argument that at no point during its marketing campaign Kik recognized any specific good or service that could be purchased with kin.
Eileen Lyon, Kik’s general counsel talks to the press about the SEC’s case which is excessively on rulings made in the Telegram case. He states that their opinion on the SEC’s Opposition is that it is mostly dependent on the recent Telegram case which they believe as a wrong decision.
Furthermore, Kik made an argument that the SEC’s motion for summary should be rejected in terms of not succeeding in showing evidence. The Kik ICO consists of a private pre-sale to authorized investors and public token in distribution token. Moreover, the company also claims that the two sales do not show any kind of involvement in the issuance of the same class of securities.