South Korean Startup Contents Protocol Team Announces Closure

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Contents Protocol Team, a South Korea-based startup firm, has shocked the crypto community by announcing that it has decided to stop its operations in the country and shall be refunding the investors in the near future. The sudden announcement has taken the firm’s investors in a blow as the firm recently organized an ICO and private token sale in 2018 and raised a total of 29,334 ETH which amounted to $8.15 Million in worth. ETH at that time stood at a price of $115 which set the firm’s worth to nearly $3.40 Million.

According to the announcement made by the Contents Protocol team, the firm has taken the decision citing the lack of business prospects, opportunities in the crypto sector. The leaders also blamed the aggressively growing regulatory uncertainty in the crypto arena for the unfavorable decision taken by the team. Uncertain legal and accounting risks can also be held responsible for Contents Protocol fallout.

Contents Protocol platform was designed to gather consumer data from local content entities such as Watcha, which is a Korea-based movie rating and recommendations app and Watcha Play, which serves as a local online movie streaming service similar to the renowned binge-watching platform, Netflix. After collecting the data, the firm would reward Watcha and Watcha Play platforms along with their users with the Content Protocol’s native token CPT. It also opined to sell the gathered data to content producers for enhancing the overall content production ecosystem. However, the plan didn’t go in support of the organization and failed miserably.

“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 which would provide data to Contents Protocol. With limited capacity in data collection, it was difficult to provide useful insight that could help content producers,” cited the firm.

The team of Contents Protocol has started liquidating and distributing its remaining assets to reimburse the investors. After meeting the expenses, the firm is left with 26,878 ETH amounting to $7.52 Million in worth. The CPT holders shall be reimbursed in the following ratio: