South Korean Crypto Company Contents Protocol Shuts Down

Korean crypto firm Contents Protocol Team is shutting down and refunding investors. The startup raised a total of 29,334 ETH via an ICO and private token sale in 2018.

February 19, 2020 | AtoZ Markets – South Korea-based crypto startup Contents Protocol Team that raised 29,334 ETH in an ICO worth $8.15 million in today’s price announced to shut down.

Why is Contents Protocol shutting down?

The company said that it is shutting down because of a lack of business prospects and continued regulatory uncertainty. Earlier, several crypto companies shut down in Europe because of regulatory issues. Crypto startup Protocols Content Team aimed to collect customer data from local content platforms like Watcha.

This is a Korean movie rating platform, and Watcha Play, by rewarding the platform and their users with their native token CPT. Watcha is a local online movie streaming service like Netflix. The platform aimed to sell the collected data to content providers for creating a better content production ecosystem. However, the idea did not turn out to be a hit.

Regulatory uncertainty also played a role in the fallout 

The startup in the announcement said that there were numerous difficulties in encouraging participation from content consumers. The reason is due to their negative perception of cryptocurrencies in general.

According to the statement, regulatory uncertainty also played a role in the startup’s fallout. Earlier in Europe, several cryptocurrency firms announced to shut down their services. This was after the 5th Anti-Money Laundering Directive (AMLD5), a new money laundering law came into effect. 

Related: How Will The New AMLD5 Affect European Crypto Exchanges?

And while Contents Protocol isn’t the first, nor will it be the last company to shut down after the ICO book, the startup made the news due to its decision to refund investors.

Contents Protocol to refund investors

The company announced to close down its services and refund investors their money on Wednesday. After consulting with law firms from both Korea and Singapore, the crypto startup decided to distribute all of its remaining assets to its users.

The company raised a total of 29,333.77 ETH through the ICO and currently has 26,877.68 ETH available for distribution. As the current circulating supply of CPT is just under 3.2 billion tokens, investors will get around 0.84 ETH for 100,000 CPT.

South Korean Crypto Company Contents Protocol Shuts Down

“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 a specified date.”

The company is set to go through a liquidation process and all the CPT it currently owns and collects through the process will be destroyed.

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