Kik CEO shuts down 300-million strong messaging app to fund war with SEC

Ted Livingston, the CEO of messenger app Kik and associated blockchain company, Kin, is stuck in two minds.

Due to the costs involved in Kik’s high-profile lawsuit with the SEC, it is shutting down its messaging app Kik—with its 300 million users—to help keep it afloat. But, according to text messages received by CoinDesk, Livingston is on the verge of throwing in the towel.

Despite having 600,000 monthly users since it launched two years ago, the SEC has hounded Kin for selling tokens during its ICO, which raised $98 million. The SEC claims it was an unregistered securities offering. And it’s been a costly business.

The fight has already cost Kik $5 million, as well as losing it potential new business. While it set up a $5 million fund to help it keep fighting, it was not enough. Instead, it is closing down the Kik app, cutting its headcount from 100 to just 19 staff and focusing fully on making Kin succeed.

Ethereum scaling platform Connext upgrades to version 2.0

Connext, an infrastructure layer that scales the Ethereum platform, has upgraded to version 2.0, according to a blog post by founder Arjun Bhuptani yesterday. The update adds natively supported wallets, and promises to make Connext faster and easier to use.

Ethereum is running at close to full capacity, according to Etherscan, and needs to scale, fast. The point of the Connext Network is to help Ethereum to process more transactions without actually changing the nature of the Ethereum network itself—a much more difficult task that is slowly in progress.

Connext uses state channels to provide extra scalability. These are off-chain blockchain transactions that work a bit like a bar tab. Users make a bunch of payments between each other and then, after a certain period of time, “settle the tab” by making an on-chain transaction on the Ethereum blockchain. It means that hundreds of transactions can be made while only two actually use up space on the Ethereum network.

Here are the biggest stories in the cryptoverse:

• Singapore is using blockchain to tackle university degree fraud.
• ID provider Onfido teams up with the Agora blockchain to help cut fraud.
• Kim Dotcom to sell his token on Bitfinex.  
• 25,000 french retailers to accept bitcoin in 2020. 

Crypto gaming company behind Gods Unchained raises $15 million in Series A

What you need to know

Immutable, the blockchain gaming company formerly known as Fuel games, announced today that it has raised $15 million in a Series A funding round led by Naspers Ventures.

Immutable is using the money to further develop its flagship product, the blockchain gaming hit Gods Unchained. The crypto collectible trading card game is now led by Chris Clay, who formerly helped develop a digital version of Magic: The Gathering. The company also plans to use the funds to build what it calls the “Immutable Platform,” a blockchain-based development kit that allows individuals to create new games featuring digital assets such as cards, weapons and skins that players can truly own and trade.
 

Why it's important

Tyler Perkins, vice president of marketing at Immutable, says that Gods Unchained centers around a concept known as “play-to-earn,” where players are rewarded with digital assets for their winning performances. “Given these assets can be sold in an open, real-world economy, this effectively allows gamers to monetize their in-game effort,” Perkins told Decrypt. “Each card is represented as a tokenized asset on the Ethereum blockchain.”

Everledger makes more than diamonds forever

Chinese conglomerate Tencent—the company with stakes in everything from League of Legends to WeChat—led a $20 million Series A investment into Everledger, a London-based blockchain company focused on the supply chain industry, according to a press release.

Other investors included Graphene Ventures, Bloomberg Beta, Rakuten, Fidelity and Vickers Venture Partners. Everledger, founded in 2015, has previously found support from financial institutions like insurance giant Allianz and Barclays bank.

Read more here.