Atari has terminated its partnership agreement with ICICB Group, including hotel, casino licenses and any relationship to the ATRI token. The company said in a press release that the joint venture did not give enough control over how the ATRI token was managed.
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The California-based company added it still believes that blockchain will have a "meaningful role" in its business, and a branded Atari token that focuses on gaming, community, and utility will have an important place in that ecosystem.
"We feel that requires us to directly issue and manage any token that has our name on it," Atari added.
The company said it will be issuing a new token in the near future and will offer to exchange the new one for ATRI tokens that were held on April 18, 2022. To participate in the exchange, holders of the "old token" will be required to present their ATRI tokens at the time of the exchange. Only those tokens that stored in wallets as of the snapshot will be eligible, Atari emphasized. ATRI tokens after April 18, 2022, will not be able to participate in the exchange.
Shortly after the news broke the price of the ATRI token declined significantly, losing in a moment almost 30% to $0.011. As of press time, the token is trading at the $0.013 mark with market capitalization of $19.6 million.
ATRI tokens were first issued in November 2020 in combination with the casino for cryptocurrencies. The company hoped that the token would discover various potential profitable use cases that are closest to the domain of video games, with priority being given to online casinos that are playable with cryptocurrencies.
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