Korea’s ICO Contents Protocol announces liquidation

South Korean Content Protocol initiated an ICO offering and raised about 26,000 ETH, valued at $7.4 million from investors. However, the project will shut down and holders of the asset will receive part of their invested funds back.

According to details available on the company’s modified portal, the project cannot continue due to business challenges and legal obstacles.

The initial ICO of the firm closed in Dec. 2018, as the project received about 7,000 ETH from investors, making its funding goal a bit successful. But it received an additional 22,000 ETH from private token sales.

Company finalizes liquidation and distribution of assets

The company said based on an advisory and legal opinion from firms in Singapore and Korea, it is announcing the company’s liquidation and asset distribution on a pro-rata basis. The portal stated that Content Protocol will go through the liquidation process while the CPT it currently holds through the process will be destroyed.

The Content Protocol token was developed by Watcha. The main idea behind the project was to offer rewards to users of the platform with CPT tokens when they give up their data by interacting with the platform.

$1.5 million spent on agency and legal fees

The Contents Protocol team pointed out that it spent about $1.5 million in agency and legal fees during its first year of operation. In addition, there were other uncategorized agency fees in the form of an ICO commission of about 1,500 ETH. According to the team, what is left is about 27,000 ETH, and 2,000 of that amount came from the success of ETH/Bitcoin trade.

The team is using the ratio of 0.84 ETH for 10,000 CPT to return tokens to holders, which was measured by determining the circulating supply of CPT.

However, the investor refund is not a normal and conventional one as each investor is not likely going to get the equivalent of what was invested. The supply calculation also included all circulatory calculations, including those initially given to the team, advisors, and other participants in the project.

The team encountered complex user experience

Unfortunately, the project could not go ahead because of some difficulties the company has identified on its portal. The company said the project development team cited complex user experience and high volatility as their main obstacle during the project. They said it was also a big challenge to find other content platforms. In addition, there were uncertain accounting and legal risks, which needed serious deliberation.