South Korea-based cryptocurrency startup, Contents Protocol Team having raised a total of 29,334 ETH ($8.15 million in today’s prices) via initial coin offering (ICO) and private token sale, is shutting down and refunding its investors. The startup cited lack of business and regulatory concerns as the catalysts towards its shut down in an announcement on Feb. 19.
Nevertheless, the goal of the project was to collect information from local platforms such as Watcha and Watcha Play. The startup then rewards both the platform and its users with the native Content Protocol Team token, CPT. Watcha is a Korean app for recommending and rating Korean movies. On the other hand, Watcha play is a local online streaming service provider like Netflix or Showmax.
Furthermore, Content Protocol then decided to sell the data gathered to content providers for developing a conducive content production system. However, that idea also did not materialize. According to the firm:
“There were numerous difficulties in encouraging participation from content consumers because of their negative perception toward cryptocurrency, price volatility and complex user experience. It was also a challenge to bring in content platforms who would provide data to Contents Protocol. With limited capacity in data collection, it was difficult to provide useful insight that could help content producers.”
Content Protocol has 26,878 ETH ($7.52 million) Remaining
In addition, the firm also noted that legal concerns and accounting risks contributed to the failure of the startup. The firm is now liquidating all of its remaining assets to the company’s investors. Content Protocol has about 26,878 ETH ($7.52 million) after deducting all the expenses. The assets will be distributed to all the CPT holders; according to a ratio suggested by the firm in its announcement.
In conclusion, according to data from ICObench, Content Protocol ran an ICO from Dec. 17 to 20 back in 2018. At the time, the price for one ETH was about $115.However, the price of ETH has more than doubled at $280.71 for 1 ETH.