Kik Messenger closes its doors even though the service has millions of active users around the world.
The company has announced the closure of the courier service to focus on the cryptocurrency Kin also created.
In a blog, Kik Interactive said the decision was forced by a legal dispute with the US Securities and Exchange Commission (SEC) about Kin.
The decision also means that 80 employees who run Kik will be fired.
No date has been given to close the Kik app.
Kik Messenger was launched in 2010 and was very popular because it allows people to register and use it without providing a phone number or other identifying information.
The request was also controversial, and a BBC News investigation in 2018 suggested that it had appeared in 1,100 cases of sexual abuse of children in the United Kingdom, which the police had investigated over the past five years. Last years.
In response, Kik stated that he “constantly assessed and improved his confidence and security measures.”
Ted Livingstone, the founder of Kik Interactive, explained that the company had made the “difficult decision” to close Kik because he wanted to devote all his attention to cryptocurrency Kin.
By closing Kik and reducing its 19 employees, the company could reduce its overhead costs by 85%, he said, which would give him a much higher chance of winning the legal battle against the SEC.
He acknowledged the difficulty that this decision would cause, as it would mean the removal of people who had a family and “poured their heart and soul into Kik and Kin for more than ten years.”
The dispute exploded because the SEC wanted the launch of the Kin cryptocurrency to be classified in the same way as the initial exchange offer for publicly traded companies.
He said that when Kik Interactive launched Kin, he made an “unrecorded” offer of $ 100 million (£ 80 million).
Livingstone said he had to resist Kin’s “security” rating, as this categorization would “kill” its ease of use and that of other cryptocurrency-like systems.
“We decided to take a step forward and fight,” he said.
In addition to fighting in court, Kik Interactive would also work to convert millions of existing Kin users into more active customers and buyers, Livingstone said.
Kin currently has two million “monthly active winners” and 600,000 “monthly active spenders.”
And the growth of the Kin user community would mean a lot more trouble for the SEC to prevail.