South Korea’s Cyworld Shuts Down Operations Without Notice; Clink Crypto Investors Prepare To Sue
South Korea’s Cyworld, known for its renowned social media platform, has halted its operations on Tuesday, October 1 reports Coin Telegraph who referenced The Korea Times.
The problem that stems from their decision to disappear is that investors who have gotten themselves the Clink (CKCT) crypto assets are now lost in the woods since the former cannot be accessed.
Given their abrupt decision, cryptocurrency exchanges known for having supported CKCT, i.e. CoinZest and BitSonic, are supposedly planning to delist the asset, while investors are taking measures to possibly sue the CEO, Jeon Jae-wan.
Launched in 1999, Cyworld was popular in South Korea with nearly 25 percent of the population using the platform. Eventually bought over by SK Communications in 2003, popularity for the site only heightened. Unfortunately, not everything lasts forever, and it seems like by 2006, the subscribers started leaving – with a loss of 1 million users in a 2-year timespan.
Cyworld’s Clink was eventually launched in 2018, which was created to replace the platform’s virtual currency called dotori. The token is said to be used as a reward for participating users. At the time, the value of the digital asset was predicted to rise based on factors including user interaction, developers and businesses’ participation.
What Will Be Compromised at Hand?
As per the news outlet, some estimates have been lurking the market, and if Cyworld decides against confronting investors, then the loss is apparently equal to roughly 1 billion won (i.e. $844,000). The Initial Exchange Offering conducted on CoinZest earlier this year resulted in the sale of 480 million won worth of Clink. The hype eventually died off, with the asset losing nearly 96 percent of its initial value.
It could be that millennials are the ones at a loss here, as the majority of Cyworld’s subscribers are in their twenties reports the Age.