The app is designed for people who want to create social content, but find traditional video editing tools too complex or time-consuming.

"Our intent was to provide a useful creative tool and to give people control over whether their public content could be referenced in this way," the company said in a blog post. "We've heard the feedback that this feature missed the mark, so it's no longer available."

Schneider, who formerly served as the CEO of Automattic and is a partner at True Ventures, says he is "all in" on the unconventional social media platform.

Fizz has expanded its lawsuit against rival Sidechat, alleging that a Maveron VC shared its confidential information obtained during a fundraising meeting with the competing startup.