UPDATE: Kik has allocated $2MM to other projects
taking on their own fight and the Blockchain Association is coming on board to govern the fund.
More details here: Defend Crypto: Expanding the Reach and Impact with the Blockchain Association
The SEC has been shaping the future of crypto behind the scenes with settlements that set a dangerous precedent and stifle innovation.
Kik is unwilling to let that happen so has set aside $5MM in a separate Coinbase account to take them on in court. But it is not just Kik that is impacted by the regulatory uncertainty. Many other projects are facing pressure behind the scenes. Many of which don’t have the resources to fight and are being forced to simply fold and walk away.
So going forward, the Defend Crypto fund will be dedicated to helping other projects outside of Kik in their fight to Defend Crypto. Kik has moved its initial $5MM commitment into a separate account and has committed an additional $2MM to the Defend Crypto fund, along with the other outside contributions, and is calling on others to do the same. All contributions will be governed by the Blockchain Association and will go towards other litigation that impacts the broader crypto industry.
Want to contribute?
1. Choose a currency from the list below.
2. Copy the Coinbase address displayed.
3. Send crypto to that address and see your contribution reflected in the table below.
USD Coin (USDC)
Ethereum Classic (ETC)
Basic Attention Token (BAT)
Loom Network (LOOM)
Golem Network Token (GNT)
On June 4, 2019, the SEC filed an enforcement action against Kik for its 2017 distribution of
the KIN token. This comes after months of Kik trying to find a reasonable settlement that wouldn’t
severely impact the project and everyone in the space.
In January 2019, Kik came out publicly to share what has been going on behind the scenes with the SEC. At that time the SEC was asserting claims against Kik and the Kin Foundation, but the recent enforcement action only cites Kik and its role in the distribution of Kin in September 2017.
That is a big step forward as it shows that Kin today - which is earned and spent by over 500k people per month - is not a security. But it still does not give clear guidance on how decentralized networks should be launched and put in the hands of consumers.
This has been a burden for not just Kik, but many others in the space who are optimizing for regulation before innovation. So Kik is going to take on the SEC in court to make sure there is a foundation for innovation going forward. Many others are on the path to do the same, and will need our support.
For the future of crypto, we all need Kik to win. This case will set a precedent
and could serve as the new
for how cryptocurrencies are regulated in the United States.
This may be the first case but it won’t be the only case. That’s why we set up the Defend Crypto fund, to ensure that the funds are there for the industry to work together to do this the right way.
Kin has already spent over $5MM and is committing another $5MM of BTC, ETH, and KIN in our Coinbase account to fight this out on behalf of the industry. Many others don’t have those resources and will need our support. Kik has allocated an additional $500k of Kin to other projects, along with the appreciation on its initial $5MM commitment.
If you too are fed up with this innovation tax, we encourage you to contribute also as we take on the SEC on behalf of the future of crypto in the US. Any contributions will be allocated to initiatives that promote regulatory clarity and allow for responsible innovation.
If you want to receive email updates about the latest breaking news in the fight to defend crypto or want to find more ways to get involved, fill out the information below and let us know.
The SEC first reached out to Kik three days after the token sale, and since then Kik has continued to comply with all of their requests and work hard to find a path forward with the SEC.
Despite the regulatory overhang, the Kin ecosystem continues to grow with more and more developers building with Kin, and more and more people using Kin as a currency.
Below is a timeline of events going all the way back to the token sale. During this entire time, Kik has been trying to find a reasonable settlement but has been unable to do so.
Do I have to send from a Coinbase address?
No. The Defend Crypto fund is held in a Coinbase account but you can send from any wallet or exchange.
How will I know that you are using the funds as you say?
There will be open and transparent disclosures on how funds are spent, which is intended to be used in the legal case against Kik initially. Although detailed legal bills will not be shared because they contain privileged information, summaries and amounts billed will be published on a monthly basis.
Is my contribution anonymous?
Yes. All contributions are anonymous by nature. The email sign up is not specifically tied to contributions.
If I contribute, will it affect my project legally?
If you’re worried about being targeted because of your contribution to this defense fund, all contributions are anonymous and not disclosed publicly.
Questions and press inquiries: [email protected]