Following the release of the proposed settlement between the U.S. Securities and Exchange Commission (SEC) and Canadian social media startup Kik Interactive, the latter’s cryptocurrency rallied, spurring optimism over the future of the instant messenger service and its crypto-related activities.
According to Coinpaprika.com, Kin (KIN) has jumped close to 77% over a 24-hour period as of pixel time (13:02 UTC), to the price of USD 0.00000984. Furthermore, it went up more than 126% over the course of the last 7 days.
The Canadian start-up’s clash with the regulator dates back to 2017 when Kik Interactive held its initial coin offering (ICO). Branded as a token distribution event (TDE), the SEC claimed the move represented an unlicensed securities sale.
The settlement, which was recently submitted to Alvin Hellerstein, a U.S. District Judge in New York, if approved, would require Kik Interactive to pay a penalty of USD 5 million, putting a stop to the company's legal woes with the SEC.
Earlier this month, Hellerstein ruled in favor of the SEC’s motion for summary judgement, recognizing a violation of the securities laws, which might've encouraged Kik Interactive to seek settlement with the U.S. regulator.
Meanwhile, in the cryptosphere, reactions to the latest development have been dominated by expectations of a bullish trend for the cryptocurrency, as indicated by the social media chatter.
On Twitter, the news has pushed some users to declare that KIN was “back in play,” while others asked (presumably rhetorically) whether the crypto was “going to make it finally,” having removed a potential obstacle to its growth.
A more in-depth analysis of the trend that was started on October 20 followed on message boards for traders where a surge in KIN mining activities was quickly noticed, forecasting a spike in interest in the cryptocurrency.
“KIN has been running strong, had a run up to resistance at .22 on good drill samples. Looking like it will break out of its retracement upward. A lot of cash in the bank and a lot of promising sites,” a crypto trader who goes by the nickname 'drarnold' wrote on trading community platform Trading View.
Learn more: Kin Price Nosedives After Operator Announced the Shut Down of Kik App A Legal Battle Every ICO Project Must Follow: Kin vs. SEC