ColuDLT,Colu group subsidiary has announced that is closing down its blockchain-based Colu nearby Network, and is offering to repurchase and and burn the related toCLN tokens offered to financial specialists during its initial coin offering (ICO).

The company’s buyback supply comes by way of an official announcement from Colu DLT on its web site. Per the notice, the corporate is trying to repurchase its tokens with Ether (ETH) over a 90-day period. The corporate intends to subsequently burn all the tokens repurchased this way.

According to the announcement, the major CLN purchasers have approved the company’s buyback-and-burn plan. In addition, the corporate specifies that the resale can use the ETH to CLN conversion price at the time of the ICO that is seemingly over the tokens’ current rate. They additionally specify that there'll be know your customer and Anti-Money laundering checks that investors will need to pass again so as to proceed with the resale.

Colu states that the CLN platform has faced regulative and technical challenges which the corporate doesn't feel its price pursuing. As such, the token buyback represents a pivot away from its blockchain business.

Colu DLT’s parent company Colu group can continue its projects, that center on employing a “City Currency” to drive social and economic development among cities, however notes that these projects aren't supported blockchain technology.

Origins of the CLN platform

As antecedently reported by Top Market Group, Colu co-founder Mark Smargon — who is presently listed because the VP of blockchain on his LinkedIn profile — at the start planned to launch a blockchain platform for developers back in 2015. Smargon said the corporate planned to launch a beta version of this project on Gregorian calendar month. 12, 2015. At the time, Smargon remarked:

“Colu’s audience is developers. We’re giving business tools to assist them execute their concepts and reach their customers through a central platform. We’re not essentially building mobile apps for users, however any business, that incorporates a mobile app, will use our digital quality wallet SDK easily.”

Smargon additionally mentioned 3 general use cases the corporate had planned for the platform: monetary tools and assets, possession of assets and access to public data. However, he noted that this wasn't at all a comprehensive list of use cases for his or her platform, saying that the “ideas are endless, and I’m sure we’ll be ready to expand better over the forthcoming months.”

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