Kik, one of the largest messaging apps in the US and a rival to Whatsapp, has announced it is shutting down despite having 300 million users worldwide. The company said that following the shutdown it would be focusing on its cryptocurrency, known as Kin.

In a blog post, Kik chief executive Ted Livingstone said the move was prompted by a legal dispute with the US Securities and Exchange Commission (SEC).

“These are hard decisions. Kik is one of the largest apps in the US. It has industry leading engagement and is growing again,” he said.

“Over 100 employees and their families will be impacted. People who have poured their hearts and souls into Kik and Kin for over a decade.”

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Launched in 2009, the app proved highly popular with teenagers. Unlike its competitor Whatsapp, it allows users to register and use it without providing a phone number or other credentials, making it an appealing alternative to other messengers.

In 2018, the app was the subject of BBC investigation that claimed Kik had featured in 1,100 UK child sexual abuse cases in the past five years.

In a move to slash its overheads by 85%, along with shutting down Kik, it has also culled its staff to only 19 employees, in the hope it will have a better chance of winning its legal fight with the SEC over Kin.

Launched two years ago, Kin raised nearly $100 million in its initial coin offering (ICO). Since then Kin has become one of the most widely used digital currencies with 600,000 monthly active spenders. However, shortly after its launch the SEC sued the company, accusing of illegally selling Kin tokens by failing to register the sale.

According to CoinDesk, Livingston accidentally sent a text message intended for board member William Mougayar, to one of its staff also named Will while inebriated. In the text, he threatened to quit the company.

“Will, I know I’ve been drinking, but this ain’t the drink talking, I’m [fed] up with this s***,” Livingstone wrote.

“We’ll talk more in the morning about replacement, but I quit. I have my ticket. I’m not going to jail for this.”

When later asked to clarify his comments, Livingstone reportedly replied “no comment.”

At present, there is no date set for the app’s shutdown but in his blog post, Livingstone insisted that “no matter what happens to Kik, Kin is here to stay”.

“Kin operates on an open, decentralised infrastructure run by a dozen independent companies. Kin is a currency used by millions of people in dozens of independent apps,” he wrote.

“So while the SEC might be able to push us around, taking on the broader Kin Ecosystem will be a much bigger fight. And the Ecosystem is close to adding a lot more firepower.”