Kik has sold their messaging app to MediaLab for an undisclosed amount. Ted Livingston, the founder of Kik, recently announced that he would be shutting the application down so he could divert all resources to his battle with the U.S. Securities and Exchange Commission (SEC). Legal troubles started after Kik raised about $100 million through a token sale for their cryptocurrency called Kin. The SEC states that they violated security laws during the token sale. Kik believes that they haven’t broken any laws. Ted said that he is committed to Kin because he sees such tokens as the only way to tackle an ever-increasing concentration of wealth as well as the prevalence of monopolies:
“Cryptocurrencies are the only way, the only tool we have now that we can counteract that, where we can build a new economy with a new form of money where we can rewrite the rules for how wealth and value is created in a global society.”
MediaLab is a holding company that owns several other mobile applications like the anonymous social network called Whisper. They also own the mix tape app called Datpiff. MediaLab said it plans on implementing a few of their own ideas into Kik, including making the app faster and reducing the amount of unwanted messages and spam bots. MediaLab said it will implement programmatic advertisements over the coming weeks in order to cover the costs of running the platform. This is a controversial move, yet it is a compromise that will allow the application to continue to run. MediaLab said that they still plan on integration Kin into the Kik application.