Weird drama involving minor cryptocurrency causes closure of Kik, a huge messaging app
This is a really, really odd story, and I don't know what to make of it.
For those unfamiliar, Kik is a messaging app with 300 million users. It's similar to texting, except it's free to download and use, and does not require a phone number. It's kind of like a more modern version of AIM.
It is extremely popular with teens, but adults use it, as well. Created in 2010, Kik has had its share of controversy over the years. Some have criticized it as a way teens can exchange messages with strangers online without their parents being able to see. In many cases, parents aren't even aware that Kik is a messaging app. This has also led to a lot of sex crimes against minors committed via Kik. These crimes include pedos talking kids/teens into sending explicit pictures, as well as those same pedos actually meeting kids in person, after having spoken via the app. Kik, based out of Canada, has also been notoriously uncooperative with law enforcement, refusing to store messages on their servers, and sometimes rebuffing law enforcement requests for user information.
Now Kik is closing down, but not for the reasons anyone would have ever expected. They're not shutting down due to any of the concerns noted above. Instead, they're closing down an app with 300 million users in order to go forward with a little-used cryptocurrency with seemingly no viable future.
Kin (notice the very similar spelling to Kik) is a minor cryptocurrency which never really caught on. Each Kin is currently worth 0.0008 cents -- an all time low. You could have well over 120,000 Kin for a dollar.
In January 2018, a Kin was worth 0.12 cents. It has since fallen in value by a factor of 150. Wow. It has even fallen in value by 9 times since March 2019. The daily volume is less than $1 million, and the market cap is laughably less than $7 million.
Ted Livngston, CEO of Kik and creator of Kin, has some bizarre obsession with his failed cryptocurrency. He's apparently been in a long battle with the SEC regarding Kin and whether or not it's a "security". As a result, he has decided to shut down Kik and fire over 80% of his workforce, leaving just 19 people at the company, all of whom will be fighting for Kin's survival.
It is true that Kik probably loses money, as Livingston alluded to in his September 23rd blog, where he announces Kik's shutdown and explains the reasoning.
Kik's problem was that, despite its huge userbase, they never monetized it well. All major services on it are free, and there's no real advertising on the app. Presumably they are still looking to find a way to monetize it. Still, you'd think an app with a userbase that size would be of value, even if just to be sold. Instead, it's completely closing.
The date of Kik's closure will be announced later this week, but it's expected to occur within 2 weeks, and perhaps before October 1.
