• Mon, 14 Oct 2019, 04:05 PM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Colu to buy back all ICO-issued CLN tokens as it pivots away from blockchain business

Tue, 13 Aug 2019, 07:14 am UTC

Colu DLT, a subsidiary of Colu Group, announced that it is closing down its blockchain-based Colu Local Network and is offering to buy back and burn the CLN tokens sold to investors during its initial coin offering (ICO).

“… Colu Group becomes one of the first companies to voluntarily offer to purchase the entirety of tokens sold during an ICO, as blockchain project concludes,” its press release noted.

Although it did not provide specific details, Colu said that regulatory and technical hurdles to the CLN platform caused the offer to repurchase the tokens. Thus, its buyback-and-burn plan signifies a pivot away from its blockchain business.

The lack of clear regulatory guidelines in the regions where the Colu Group wishes to operate, makes the use of cryptocurrencies a barrier towards working with municipalities and other partners, which have become the main focus of our work,” Amos Meiri, Colu DLT’s Chairman of the Board of Directors and Colu Group’s Co-Founder, said.

The company will repurchase approximately 54 million CLN tokens with Ether sold during its $17 million ICO. Of note, the ETH to CLN conversion price is based at the time of the ICO, which is higher than the tokens’ current exchange rate. A buy-back window of 90 days has been set, after which the tokens will be subsequently be burned.

CLN token holders placed their trust in us and became partners in building a blockchain platform. Now that we are no longer proceeding with that platform, I believe we have an ethical responsibility towards these same partners,”

The company is expected to start the purchase process in October and will open a dedicated website for it. It also noted that holders from several companies will be excluded, including those in the United States and Canada. Moreover, all investors are subject to undergo Know Your Customer and Anti-Money Laundering inspections to proceed with the resale.

Meanwhile, Culo Group said it will continue Colu DLT’s currency projects, including the Belfast Coin (launched in collaboration with Belfast City Council) and TLV Coin for use in the Municipality of Tel Aviv-Yafo. However, neither project is based on blockchain technology.

Just recently, crypto firm FairX also closed its digital doors after it failed to secure funding for a banking license. Peer-to-peer payment network firm Circle also ended its support for its mobile app Circle Pay to explore more on new blockchain-based financial products, which include launching new wallet services and enabling digital currency adoption.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $8,306.02 (-1.55%)
  • Ethereum (ETH) $182.87 (-0.87%)
  • XRP (XRP) $0.289600 (+3.53%)
  • Bitcoin Cash (BCH) $225.67 (-0.73%)
  • Litecoin (LTC) $56.69 (-1.38%)
  • Bitcoin (BTC) $8,306.02 (-1.55%)
Oct 14, 2019 (Monday)
12:06
BMW, Ford, GM and others working on proof of concept for blockchain-based vehicle identity system
12:01
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:01
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
10:49
Crypto Technicals: LTC/USD finds stiff resistance at 21-EMA (58.62), breakout confirms further upside
10:46
G7 says global stablecoins like Libra pose threat to financial stability: Report
09:52
Global stablecoins could become systemically important: Financial Stability Board Chair
09:37
Crypto Technicals: Ripple (XRP) spikes higher, hits 4-week high (0.29369), bias bullish
09:07
Crypto Technicals: ETH/USD consolidates above 200H SMA, intraday bias turning bullish
07:01
U.S. IRS wants to know your crypto ownership in updated income tax form
06:59
U.S. SEC, CFTC, FinCEN issue rare statement warning crypto users to abide banking laws
06:56
Crypto Valley Association joins International Digital Asset Exchange Association
06:17
Crypto Technicals: BTC/USD extends sideways above 200H SMA support (8277), weakness likely on break below
06:17
tZERO and Box Digital-owned firm files with SEC to launch regulated security token market
06:10
Blockchain trade finance network Marco Polo pilots first trade transactions between Russia and Germany
06:08
Crypto exchange Coinbase secures e-money license from Central Bank of Ireland
04:30
World Federation of Exchanges urges UK FCA not to ban sale of crypto derivatives to retail investors
04:25
Telegram may postpone Gram token launch after SEC stops U.S. crypto sale
04:05
Mastercard, Visa, eBay, Stripe, Mercado Pago abandon Facebook-led Libra Association
Oct 11, 2019 (Friday)
13:27
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
13:11
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft