South Korean Social Media Platform's Sudden Shutdown Puts Its Crypto Investors in Limbo

  • South Korean social media platform Cyworld abruptly shut down on Oct. 1.
  • Investors in the platform's crypto-asset Clink are now at risk of losing their funds. 

Crypto investors are concerned for their funds following the closure of long-standing social media outlet Cyworld. 

Cyworld, a South Korean social media platform that has been around since 1999, abruptly shut down its service on Oct. 1. According to local industry officials, investors into the platform’s cryptocurrency Clink are currently in limbo as to how they will withdraw their funds. 

The social media platform’s closure occurred without a previous warning and the accompanying Clink website was also made inaccessible to users. Investors are now asking Cyworld to issue an official statement on the closure, in addition to providing a way for the investors to retrieve their funds.

According to a report by The Korea Times, Cyworld CEO Jeon Jae-wan and other company officials have not commented on the closure. 

Clink was first offered by Cyworld as an initial exchange offering (IEO) on CoinZest in January, which raised more than 480 million won ($405K) in an attempt to salvage the failing platform. Crypto exchanges that trade Clink are now considering de-listing the currency amidst the lack of information, which industry officials predict could cost investors more than 1 billion won ($845K). 

Featured Image Credit: Photo via Pixabay.com