Gibraltar Based, Colu Local Network, Closes Its Blockchain Operations; Repurchases Its CLN Token
Four years on since the co-founder of Colu, Mark Smargon, announced the possibility of launching a platform for blockchain based business tools, the Colu Local Network is closing its digital asset business.
Colu DLT official website confirmed that the company will be repurchasing its CLN tokens for a ninety day period set to be announced in the coming days.
The company will purchase the tokens sold during the ICO period and on the secondary market – amounting to 54 million CLN tokens – using Ethereum (ETH). The total amount raised during the ICO process amounts to $17 million USD. Each token will be exchanged at the current ETH/CLN price ratio, which is higher than what the investors paid for in cryptocurrency terms. The company will then ‘burn’ the repurchased tokens rendering them useless.
The move from Colu Group’s subsidiary, Colu DLT, to close shop was supported by the top owners and fundraisers of the CLN tokens. The company places the responsibility on the holders to relinquish the entirety of the tokens issued at the presale and on the secondary market.
‘Technical and regulatory issues causes halt in businesses’
In the past year or so, the Colu DLT team announced a partnership with the City of Belfast to launch its own Belfast Coin on the platform. The residents of Belfast receive rewards using the token for shopping at local businesses, healthy living and civic duties across the city.
The project also recently revealed its partnership with the Municipality of Tel Aviv-Yafo to launch a TLV coin for fundraising across NGOs.
Colu DLT has formed partnerships across various city councils around the globe with more partnerships having been discussed. However, the company felt a “sense of responsibility” towards the token holders to repurchase the CLN tokens citing technical and regulatory barriers in developing the platform further.
The Gibraltar based subsidiary company of the Colu Group, becomes one of the first companies to voluntarily offer a repurchase of their tokens.