South Korean ICO project discontinued, to return $7.5M to token holders
Thu, 20 Feb 2020, 10:58 am UTC
South Korean initial coin offering (ICO) project Contents Protocol has announced that it will discontinue its operations and return 26,877 Ether (ETH) ($7.5 million approximately) to the holders of its CPT token, Cointelegraph reported.
The Content Protocol Team made the announcement on its website. According to it, they will discontinue the project due to “regulatory uncertainties in cryptocurrency and lack of business prospect.”
The company raised a total of 29,333.77 ETH through ICO (private and public token sale) and will distribute 26,877.68 ETH to CPT holders as it goes into liquidation.
“Based on the legal opinion and advisory from law firms in Korea and Singapore, we will convert our remaining assets to ETH and distribute it on a pro rata basis to CPT holders who have requested ETH compensation until specified date. The company will go through liquidation process and the CPT we currently possess and collect through this process will be destroyed,” the announcement read.
The project collected consumer data from content platforms like WATCHA and WATCHA PLAY by rewarded the platforms and their users with cryptocurrency (CPT). It then analyzed the data and sold it to content providers to help them create better content.
However, they struggle to find participants due to the negative perception toward cryptocurrency, price volatility, and complex user experience. The team also found it challenging to find content platforms willing to provide data to Contents Protocol. Due to resulting limited capacity in collecting data, it also experienced difficulty in providing helpful insight to content producers.
On top of these, the team feels that the perception and environment for cryptocurrency will not improve anytime soon. Also, it is uncertain as to when the legal and accounting guidelines on crypto will be established.
“In order to overcome these limitations, the team went through numerous trials and errors, but after serious deliberation, we decided that it would be best to put a stop to this business and return our remaining assets to CPT holders,” the team wrote. “Sincere gratitude to everyone who has supported our project.”
Meanwhile, South Korean crypto wallet Bitberry has decided to shut down due to “market deterioration and uncertainty of the blockchain industry”. It will officially close on Feb. 29.
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