The application of KIK messed up sued SEC because of the initial currency offer

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KIK messed up sued SEC
The application of KIK messed up sued SEC because of the initial currency offer, The Securities and Exchange Commission (SEC) filed a lawsuit against the KIK application for its initial bid for 2017, which raised $ 100 million. 

Bloomberg reports that the Securities and Exchange Commission (SEC) believes that the sale's distinctive symbols, called Kane, are considered collateral, and as a result, the sale must have been registered with the government agency. 

If it wins, the KIK may be forced to provide its investors' money to investors.

At one time, Kik was a major messaging application in the United States and was particularly common in children and adolescents. Unfortunately, this popularity has contributed to becoming a "defacto application" for predators of children, according to a report released in 2017. 

Since it lost users and its revenue declined at the end of the year, the SEC claims that the company sought to use ICO as a Mary Marie pass to reverse its fortunes. 

At that time, Kick said his goal was to create a platform for developers and users of the application, allowing them to push each other using decentralized currency.

"Mary Hail Passage"
KIK has welcomed the suit. "What's interesting to me is that the industry will finally get the clarity it needs most," Ted Livingston, chief executive of Ted Livingstone, told The Wall Street Journal

The company recently launched a fund-raising campaign called DefendCrypto.org to raise funds for legal defense, raising $ 4.3 million in donations from its supporters until the date of publication.

SEC uses the so-called "Howey test" to determine whether ICO tokens are considered as security. In simple terms, if the value of a token is based on the probability of only one company, it is likely to be secure; if it is sufficiently decentralized, it is probably not. 

In 2017, the Securities and Exchange Commission (SEC) concluded that the decentralized ICO (autonomous self-governing organization) (DAO) was safe using this test, while the Ethereum symbols were sufficiently decentralized to be non-existent. 

Referring to this test, last year, the SEC launched a fake ICO called "Howey Coin" to warn people about the risks of unorganized ICOs.

In response to the Securities and Exchange Commission announcement, the value of Kane has fallen by more than 30 per cent in the last 24 hours.

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