KIK vs. SEC - Breaking Down the Fight #46
Kik, the Canadian based social media platform, has warned the U.S. Securities and Exchange Commission (SEC) that they would fight back against a proposed enforcement action against the company. But what does this mean? Why did this happen?
In a nutshell, the SEC judged Kik’s 2017 initial coin offering (ICO) to have involved the sale of unregistered securities. Kik raised around $100 million in KIN tokens for its social media network, which can be earned on their platform by posting or creating content, traded or redeemed for goods and services.
If the SEC deems that a securities infraction has occurred, they issue an enforcement action recommendation known as a Wells Notice. What is a Wells Notice? Well, we cover that, too!
Join Jonathan Dunsmoor and Aviva Ounap as they explore Kik’s prospective enforcement action over an alleged securities infraction. It is very educational, informative and enlightening!
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