A few weeks ago, the management of Kik, a social messaging app, announced that they would be closing down their services. The reason for this was that the company wants to focus on the upcoming lawsuit with the SEC. The reason they sued the SEC was that the commission categorized their Kin token as an illegal security token whereas they insist that it is a utility token. This impending lawsuit has brought to light constant frustration that exists between those who invest in cryptocurrency and the SEC, particularly when it comes to the characterization of assets and the treatment of the companies.
More changes have come to light as it was announced on October 18, 2019, that MediaLab, a Santa Monica-based Holding company has bought the Kik messenger from Kik Interactive and are the new owners.
Naturally, the new announcement touched on the Kik messaging platform and what its future holds. MediaLabs has stated that they believe that the best days for Kik are ahead and not behind and also state that they believe there is a future for the Kin token and even as the company moves ahead with the lawsuit. They will also continue to develop the token along with the platform with Kik founder and CEO Ted Livingston.
In terms of the actual app, Media labs intend to get rid of many bugs on the platform as well as spambots on unwanted messages and make the platform safe for all. One controversial move, however, is the planned implementation of ads across the platform as this has met some pushback from users. However, the company states that the matter will be handled appropriately.
“We plan to do it in a way that it is non-intrusive, and in no way takes away from what makes Kik great,” the announcement said.
Even though this move for advertising might be a controversial one, it will give the company a much-needed influx of funds as they had previously stated that they will be shutting down the app and reducing its workforce due to the SEC lawsuit but eventually announced on October 14, 2019, that they will be staying after all and this might be due to the new acquisition and plans for more income.