Colu Local Network (CLN) surged substantially in the past 24 hours, increasing by upwards of 125%. The sudden spike came shortly after the project announced that it intends to buy back the tokens that it issued during its 2018 initial coin offering (ICO) in which it managed to raise $20 million.
Colu to Buy Back CLN Tokens
Israel-based digital wallet startup Colu Technology will buy back its cryptocurrency tokens known as Colu Local Network (CLN). The tokens were issued back in 2018 in an ICO which raised approximately $20 million.
According to reports, the company will purchase about 54 million tokens. However, the price at which the company will be buying those tokens is unclear. Reportedly, Colu will use Ethereum (ETH) to buy back the tokens, and once the process is completed, it will burn the tokens, rendering them worthless.
At the time of this writing, there’s no indication as to how long the process will take or what the reasons for the move are. Moreover, its website, which is featured on all ICO ranking platforms, is currently not working.
CLN Skyrockets 125% in Response
Naturally, the report sparked a serious movement in the price of the project’s native token, CLN.
The cryptocurrency is up about 125% in the past 24 hours, and the majority of the gains came immediately after the news.
At the time of this writing, CLN is trading at $0.031. Interestingly enough, serious gains were also made in terms of Bitcoin.
The trading volume, though, is rather peculiar. The majority of it is coming from an exchange known as IDEX, and it’s concentrated in the CLN/ETH trading pair. The next largest market is CLN/BTC on the popular exchange HitBTC. However, the total trading volume during the past 24 hours is only $600.
The market capitalization of CLN is currently around $3.2 million. It will be interesting to observe whether the team carries out its plan to buy back the tokens and what their price will be.