Colu DLT Hits the Reset Button
In a surprising turn of events, Colu Group’s subsidiary, Colu DLT, has decided to close down its blockchain-based Colu Local Network. This isn’t a shocking twist in a drama series but a practical move to navigate the tricky waters of the digital currency landscape. The company has announced a buyback offer for the CLN tokens that were initially sold during their ICO.
The Buyback Plan
According to an official statement on Colu’s website, they are looking to buy back CLN tokens utilizing Ether (ETH) over the next 90 days. Investors can breathe a sigh of relief as these tokens will be repurchased to ultimately be burned—no literal flames involved here, just the digital kind!
Regulatory Challenges and Investor Requirements
Colu DLT acknowledged the hurdles faced by the CLN platform, citing regulatory and technical challenges. To proceed with the buyback, investors will have to undergo new Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. Think of this as a digital “please show your ID” at the door of a club that’s suddenly deemed exclusive.
A Shift in Focus
Despite shutting down the CLN network, Colu’s parent company, Colu Group, will continue developing projects centered around the concept of a “City Currency.” However, these new ventures won’t be hopping on the blockchain bandwagon. It seems like Colu is waving goodbye to blockchain but keeps the party going with city-focused economic initiatives.
Reflecting on the Origins of CLN
Back in 2015, co-founder Mark Smargon aimed to launch a platform catering to developers, envisioning tools that would streamline business operations. With aspirations to be the go-to solution for financial tools, asset ownership, and public information, it has been a long journey that ultimately led to this latest announcement. One can only wonder how many ideas got scribbled in the notebook before the decision was finally made.
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