Initial coin offering is so common nowadays and probably that is why the U.S. Securities and Exchange Commission keeps strickening the regulations when it comes to ICOs. It is obvious to everyone that SEC officials have a huge grudge on ICOs. Who knows, maybe some of them had not so good experience investing in crypto. Who knows, who knows…
Officially though, according to SEC standpoint, every cryptocurrency is security (not an actual currency), therefore it should be treated as one.
Canada-based media company Kik Interactive Inc. intends to challenge that and is planning to take this matter to court to prove how wrong SEC is. They believe that their token is not a security and of course according to the company representatives Kin is “the only cryptocurrency that truly is a currency”.
In 2017, Kik raised almost $100M for its Kin token. This sum was raised in less than 48 hours.
No matter how this will be resolved, it can create help to understand the scope of SEC authority over ICOs and create a legal precedent for some future battles. Read the full report here.