(BlockBar) Canada-based messaging app firm Kik has launched a crypto crowdfunding. The crowdfunding campaign is to support the court battle with the U.S. Securities and Exchange Commission (SEC) over its 2017 initial coin offering (ICO). The campaign is announced by Kik founder and CEO Ted Livingston and Patrick Gibbs, a partner at law firm Cooley LLP. It is being launched in the hopes that “a lawsuit would eventually result in a new Howey test for crypto tokens, to determine which ones are a security.”
Defend Crypto has already been set up allowing supporters to contribute to the fundraising effort. The site offers donation options in 19 cryptocurrencies, including bitcoin (BTC), XRP, and ether (ETH) as well as so-called less standard options like augur (REP), DAI and, of course, Kik’s kin (KIN) token. The SEC has expressed concerns that kin might be a security and the regulator may seek an enforcement action against the firm. But Kik maintains that its token is used as a currency. SEC chairman Jay Clayton has earlier said: “I believe every ICO I’ve seen is a security.” He added: “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.”
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 said the Defend Crypto campaign would help ensure the funds are in place “to do this the right way.” The firm announces that it’s already spent over $5 million on the case and is now committing another $5 million in BTC, ETH, and KIN “to fight this out on behalf of the industry.” Kik is encouraging other supporters to fight this by donating cryptos that will be held in a Coinbase account. The cryptos will only be used once Kik’s $5 million has been spent. It is to be noted that unused funds will be allocated to “other initiatives.”
