Altcoin News: Kik Cuts 70 Employees of Its Crypto Unit in Israel

September 24, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The Canadian company Kik Interactive Inc., which is behind the development of the Kik mobile messenger, sent notifications of reductions to 70 employees of its crypto unit in Israel on Monday, according to media reports.

According to the Israeli daily business newspaper Calcalist, citing two anonymous sources, some of them will be offered jobs in the new company, “based on the same technology.” Sources also claim that the issue of the complete closure of the company’s application is currently under consideration.

Kik held an initial coin offer (ICO) in September 2017 and then raised $98 million. This June the company became a defendant in a lawsuit by the US Securities and Exchange Commission (SEC) over alleged violation of securities laws. SEC claims that Kik management decided to conduct an ICO amid the deplorable state of the company’s core business, hoping in this way to fix its financial situation.

According to Calcalist, Kik opened offices in Israel in January 2017 based on the Tels Aviv firm Rounds Entertainment Ltd., which it acquired. The details of the transaction were not disclosed, however, reports published at that time indicate that it could be valued at $60–80 million.

Commenting on the publication of Calcalist, Kin Foundation public relations manager Kevin Ricoy wrote on Reddit:

“I can confirm a restructure is happening. An official statement with more information will be released shortly. The Kin Foundation is not shutting down, and the development of the Kin ecosystem will continue.”

Against the background of today’s announcement, the rate of the Kin token, which has depreciated 3 times since the beginning of June, fell another 10% in conditions of limited liquidity.

At the beginning of September, the famous Kik venture capitalist and investor Fred Wilson supported the company ’s promotion until recent events.

Author: Marko Vidrih