Kik may terminate operations as ICO projects face challenges under SEC regulatory pressure.

The latest news shows that the well-known social media company Kik Interactive is considering terminating the operation of its messaging app Kik. The company has issued layoff notices to 70 Israeli employees. Company CEO Ted Livingstone publicly stated on September 24 that the Kik app will be shut down, and the employee count will be reduced to an elite team of 19.

Since the U.S. Securities and Exchange Commission ( SEC ) charged the company with conducting a $100 million token offering without registration, Kik has been legally defending its initial coin offering tokens. Steven Peikin, co-director of the SEC's enforcement division, pointed out that by selling Kin tokens, Kik deprived investors of the legitimate information they were entitled to and hindered their ability to make informed investment decisions.

Kik was founded in 2009 by several Canadian students and has received investments from several well-known institutions. In 2017, Kik conducted its initial coin offering (ICO), raising $98 million, and launched the virtual currency Kin.

This event has once again raised people's concerns about the relationship between blockchain startup projects and regulatory agencies. As the cryptocurrency industry continues to develop, finding a balance between innovation and compliance has become an important issue faced by the industry.