Contents Protocol Refunds $8M ICO, Shuts Down Due To Crypto’s Negative Perceptions
Content-sharing platform, Contents Protocol has announced on Wednesday that is shutting down and will refund investors the $7.5 million worth of Ether (ETH) that were raised in the initial coin offering (ICO). Here’s what the Contents Protocol announcement from the official website reads:
“We inform you that due to continued regulatory uncertainties in cryptocurrency and lack of business prospects, we have decided to end our project.”
A WATCHA Play Subsidiary
Contents Protocol became an ICO market player later, completing its crowd sale in December 2018. As a subsidiary of the Korean streaming service WATCHA Play, it was designed for incentivizing content sharing by offering its reviewers of show and films rewards in its native token, the CPT. However, it had to shut down, explaining that it had too few users because people have a negative perception when it comes to cryptocurrencies. It also said that it doesn’t expect the anti-crypto attitudes to change very soon either.
$7.5 Million Worth of Assets Converted Back into ETH
In its public and private ICOs from 2018, Contents Protocol managed to raise 29,333 ETH (worth $8.1 million). The remaining assets, valued at about $7.5 million, have been converted back into ETH after the shutdown, remaining to be redistributed to investors who made requests for refunds. The company said the collected CPTs are going to be destroyed as soon as the liquidation process begins, so the users holding the tokens will be able to exchange them at the $0.002 worth of ETH until then.
According to the asset records provided by the firm, about 3,800 ETH were exchanged into $1.45 million for funding business operations. While a part of the funds has been converted into Bitcoin (BTC), most of the assets remained in Ethereum (ETH).