Colu Local Network (CLN) token surged substantially in the past 24 hours, marking daily increases upwards of 125%. The sudden spike came shortly after the project announced that it intends to buy back the tokens that it issued during the Initial Coin Offering (ICO) it had in 2018 when it managed to raise $20 million.
Colu To Buy Back CLN Tokens
Digital wallet startup Colu Technology, based in Israel, will buy back its cryptocurrency known as Colu Local Network (CLN). The tokens were issued back in 2018 in an ICO which managed to raise as much as $20 million.
According to reports, the company will purchase about 54 million tokens. However, it remains unclear what the price that the company will be buying the tokens is. Reportedly, Colu will use Ethereum (ETH) to buy back the tokens and once the process is fully completed, it will burn the tokens, rendering them worthless.
At the time of this writing, there’s no further information as to how long the process will last and what are the reasons for the move. Moreover, the website which is featured on all ICO ranking platforms is currently not working.
CLN Skyrockets 125% In Response
Naturally, a huge move of the kind propelled a serious movement in the price of the project’s native token – CLN.
The cryptocurrency is up with about 125 percent in the past 24 hours and the majority of the gains came immediately in response to the news.
At the time of this writing, CLN is trading at $0.031. Interestingly enough, serious gains were also made against Bitcoin.
Looking at the trading volume, though, things are rather peculiar. The majority of it comes from an exchange known as IDEX and it’s concentrated in the CLN/ETH trading pair. Following is CLN/BTC trading on popular exchange HitBTC. However, the total trading volume for the past 24 hours is only $600.
The market cap of CLN is currently around $3.2 million. It remains interesting to observe whether the team will carry out its plan to buy back the tokens and what will their price be.