In early 2018, Colu raised $20 million in an initial offering of its own cryptocurrency, Colu Local Network (CLN); Colu said the buyback will not affect the use of local currencies such as TLV Coin
Colu DLT is set to acquire the entirety of tokens it issued, amounting to approximately 54 million tokens, the company said. The company did not disclose the price per token, but said it will purchase the tokens in Ethereum. Once the process is completed, Colu DLT will ‘burn’ the tokens purchased, rendering them worthless.
Colu has yet to respond to Calcalist’s request for comment on the reason behind the buy-back.
Founded in 2014 and headquartered in Tel Aviv with an additional office in London, Colu uses blockchain technology to create localized digital currencies designed to encourage local spending within communities. The company launched its digital wallet, available in Tel Aviv, Haifa, East London, Belfast, and Liverpool, in early 2017. In a statement, the company said the move only pertains to the CLN issued as part of the ICO and will not impact its local currencies such as its TLV coin.
“CLN token holders placed their trust