Colu Group subsidiary Colu DLT has announced that it is shutting down its blockchain-based Colu Local Network, and is offering to repurchase and burn the accompanying CLN tokens sold to investors during its initial coin offering. The company's buyback offer comes by way of an official announcement from Colu DLT on its website. According to the notice, the company is looking to repurchase its tokens with Ether over a 90-day period.

The company intends to subsequently burn all the tokens repurchased this way. Colu states that the CLN platform has faced regulatory and technical challenges and that the company does not feel it is worth pursuing. Colu DLT's parent company Colu Group will continue its projects, which center on using a "City Currency" to drive social and economic development within cities, but notes that these projects are not based on blockchain technology.

As previously reported by Cointelegraph, Colu co-founder Mark Smargon - who is currently listed as the VP of blockchain on his LinkedIn profile - initially planned to launch a blockchain platform for developers back in 2015.