Korean ICO Project Shuts Down, Says ‘Negative Perceptions’ of Crypto Made Business Impossible

An $Eight million ICO problem is shutting down, citing regulatory uncertainty and difficulties in onboarding new prospects.

Content material material-sharing platform Contents Protocol launched Wednesday that following fairly a number of makes an try to indicate its enterprise into successful, the company is closing down and refunding patrons as so much as $7.5 million-worth of the ether (ETH) raised in its preliminary coin offering (ICO).

“We inform you that as a result of of continued regulatory uncertainties in cryptocurrency and lack of enterprise prospects, now we have now decided to complete our problem,” reads an announcement that has modified Contents Protocol’s website online.

Contents Protocol was a relative latecomer to the ICO enhance, solely ending its crowd sale in December 2018. It was created as a subsidiary of WATCHA Play, a popular Korean streaming service, and was designed to incentivize content material materials sharing by efficiently rewarding prospects who rated and reviewed motion pictures and TV featured on the platform with its native CPT token.

“The first issue that the blockchain permits us to do is … compensate a model new participant [users] who really current free promoting for the content material materials,” acknowledged John Kim, Contents Protocol’s worldwide enterprise developer, in an interview with Ran NeuNer for CNBC, once more in Would possibly 2018.

The problem aimed to show into worthwhile by processing and analyzing sharing data, which could subsequently be purchased once more to content material materials suppliers to inform them on which movies and TV assortment must be featured on their platforms.

Nonetheless in Wednesday’s announcement, Contents Protocol complained that few buyers wanted to make use of the platform because of this of of the “unfavorable notion in the direction of cryptocurrency, worth volatility and complicated particular person experience.”

The company acknowledged anti-crypto attitudes had been unlikely to boost inside the temporary time interval, and would impression how digital property might be regulated in the end. And never utilizing a strong particular person base, it moreover made it troublesome to encourage completely different content material materials suppliers to supply data for the platform, limiting any doable insights that might presumably be subsequently purchased once more to platforms.

Contents Protocol raised 29,333 ETH ($8.1 million) in its personal and public ICOs in 2018. All remaining property, worth roughly $7.5 million, have now been remodeled once more into ether and can possible be distributed to patrons who’ve requested refunds.

CPT token holders will even be succesful of alternate them at a cost of one token for $0.002 worth of ether. All CPT collected will possible be destroyed when the company enters the liquidation course of, the company acknowledged.

In accordance with Contents Protocol’s asset knowledge, spherical 3,800 ETH was exchanged into $1.45 million to fund enterprise operations. Although some of the funds had been remodeled into bitcoin (BTC), the overwhelming majority of property remained in ether all via the company’s lifetime.

A corporation spokesperson did not reply to requests for comment by press time.

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