Colu Local Network Recalls Token Amid Regulations
2017-18 was a pretty wild time in the world of cryptocurrencies. Bitcoin was breaking all time highs and Ethereum was tagging along for the ride. Bitcoin ended up peaking at $20,000 while Ethereum reached highs of $1384. These new highs caused an avalanche of new cryptocurrency offerings called ICOs, or initial coin offerings.
A company or team would list their token or coins functions in a whitepaper and set up a fundraising goal. The majority of these projects have raised very large amounts yet performed horribly after release. One of these projects was Colu.
Fintech payment app Colu was not late to join in on the ICO madness. The Israeli based company has managed to raise a whopping $17 M USD equivalent in 2018 to develop their own token. This ended up becoming the Colu Local Network token, also known as CLN. Like many ICOs of its time, the price of CLN has been declining pretty steadily since its launch.
In a rare move, Colu has announced a buy-back of Colu Local Network token. In their announcement to Israeli media, Colu stated the success of their app and growing global markets but issues with their cryptocurrency. They have stated that regulatory issues have caused trouble for the company Colu Local Networks was registered under. This was Colu DLT a registered company in Gibraltar while Colu headquarters are mostly based in Tel Aviv.
This has caused Colu to declare a buy-back of CLN tokens in circulation.
News of this buyback has caused CLN's price to explode. Its value has doubled in the past 24 hours. The price went from $0.015 to $0.030 as news spread. It is currently unknown at what rate Colu is buying back tokens. All that is known, is that the tokens will be burnt following the buy back.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado