• Wed, 20 Nov 2019, 07:08 AM
  • All times are UTC
  • Edition:
Copy link
Increase text size
Decrease text size
Link copied

Report: Cyworld shuts down without notice; 'Clink' investors want to sue

Tue, 15 Oct 2019, 04:59 am UTC

South Korean social media platform Cywork abruptly shut down its services on Oct. 1 without any prior notice, according to a report by The Korea Times. Now, investors of its crypto-asset “Clink” are alarmed as the former can no longer be accessed.

Adding to the mess, Korean crypto exchanges CoinZest and BitSonic are considering delisting the token, whereas investors are taking measures to possibly file a case against Cywork CEO Jeon Jae-wan.

Launched in 1999, Cyworld was popular in the country as an estimated 32 million users were on the platform. It was eventually bought over by the SK Communications in 2003. However, in 2006, many of its subscribers started to leave, registering a loss of 1 million users in a span of 2 years.

In an attempt to turn fortunes around, the firm sold 24 million of crypto-assets worth 26 won per unit ($0.022) in an initial exchange offering conducted on CoinZest in January. A total of 480 million won ($405,000) worth of Clink were sold.

As of Oct. 14, the token’s price plummeted to 0.7 won on CoinZest and 0.19 won on BitSonic.

In the second half of 2019, the company has experienced a massive exodus of employees as it failed to pay them since the end of 2018 after its newly launched service QUE flopped.

Industry officials estimate that clink investors are estimated to lose at least 1 billion won (~$844,000) if the company fails to fix the situation around.

Meanwhile, despite the earlier announcement of its closure amid legal problems, Canadian messaging app Kik said it is “here to stay.” It also revealed its plan to shift its focus on its cryptocurrency Kin.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $8,206.70 (-0.49%)
  • Ethereum (ETH) $178.36 (-0.24%)
  • XRP (XRP) $0.254500 (+0.82%)
  • Bitcoin Cash (BCH) $244.32 (-1.05%)
  • Litecoin (LTC) $56.41 (-0.45%)
  • Bitcoin (BTC) $8,206.70 (-0.49%)
Nov 20, 2019 (Wednesday)
Deutsche Börse, Swisscom settle securities transactions using tokenized assets and different DLT protocols
Crypto Technicals: ETH/USD holds cloud support, break below will see further downside
CA$16M client funds of Einstein Exchange reduced to CA$45,000 in ‘hard assets,’ interim receiver reported
Galaxy Digital launches two bitcoin funds with Bakkt and Fidelity Digital Assets as custodians
Crypto Technicals: BTC/USD holds above 55W EMA (7952), 'Hammer' formation raises scope for minor recovery
Fidelity Digital Assets gets approval to offer crypto custodial services in Empire state
Crypto risk assessment platform secures $4.9M funding with PayPal leading the charge
Nov 19, 2019 (Tuesday)
Crypto exchange Gemini acquires NFT platform Nifty Gateway
Weibo suspends accounts of Binance and Tron amid fresh crackdown of crypto businesses in China
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
Crypto Technicals: XLM/USD breaks below 50-DMA, hits 3-weeks low (0.0645), bias bearish
Binance unveils fiat-to-crypto gateway for Turkey
U.S. SEC to review Bitwise’s Bitcoin ETF proposal; Reason behind the revisit still unclear
Factom wins second DHS SVIP award to develop blockchain-based anti-forgery solution
Blockchain-based payment processor RadPay secures $1.2M in a series seed round
National Advisory Council urges FEMA to adopt blockchain tech to increase aid efficiency for disaster-stricken areas
Crypto Technicals: BCH/USD breaks 4H 200-SMA support, hits 4-week lows at 237.50, bias lower
Nomura’s joint venture ‘Boostry’ releases official webpage of its security token platform
Fledgling crypto money lending platform raises $25M led by Andreessen Horowitz
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.