Kik launches crypto crowdfunding campaign launched to fight SEC

Kik, a messaging platform based in Canada, has recently launched a crypto crowdfunding campaign to fight against the U.S. Securities and Exchange Commission (SEC) in the court over its 2017 initial coin offering (ICO). Kik founder and CEO Ted Livingston and Patrick Gibbs, a partner at law firm Cooley LLP, announced on the UnChained Podcast that the campaign is being launched hoping that “a lawsuit would eventually result in a new Howey test for crypto tokens, to determine which ones are a security.”

“Defend Crypto” is a website which has been set up to enable supporters to contribute to the fundraising effort. The founders state that it is not only in support of Kik but many crypto firms that face potential action from the U.S. regulator. The site will offer donations in Bitcoin (BTC), Ether (ETH) and XRP along with 16 other cryptocurrencies. Kik’s KIN token is also listed in the site.

Though Kik maintains that their token is a currency, SEC insists that their token might be a security and the regulator may seek enforcement action against the firm. Earlier, SEC chairman Jay Clayton said: 

“I believe every ICO I’ve seen is a security. I want to go back to separating ICOs and cryptocurrencies. ICOs that are securities offerings, we should regulate them like we regulate securities offerings. End of story.”

On the new website, Kik states:

 “After months of trying to find a reasonable solution, Kin has been unable to reach a settlement that wouldn’t severely impact the Kin project and everyone in the space. So Kin is going to take on the SEC in court to make sure there is a foundation for innovation going forward.”

Kik reported that the Defend Crypto campaign would help ensure the funds are in place “to do this the right way.” The firm said that it has already spent more than $5 million regarding the case and is now carrying out another $5 million in BTC, ETH, and KIN “to fight this out on behalf of the industry.”