One of the ICO’s projects, the Contents Protocol, has announced that it will be shut down due to a lack of business prospects and regulatory uncertainties.

Contents Protocol is a South Korean-based crypto startup focused on content exchange.

In a unique and rare outburst of professionalism and solidarity, the company will refund the money to its investors, distributing just under 27,000 ETH on a pro-rata basis.

“Contents Protocol” discontinued after 14 months:

Contents Protocol has announced that it will be closing.

The startup, which raised $10 million in Ethereum in its initial coin offering (ICO) in December 2018, announces its retirement after less than 14 months.

Read:Ethereum founder proposes a solution to help recover cryptocurrencies after losing private keys

The project was created to collect consumer data from Korean content platforms such as “WATCHA” and “WATCHA PLAY” in order to create a better ecosystem for content production.

The company rewarded the platforms and their users for data collected through its native cryptocurrency, a Content Protocol (CPT) token, which would later be processed to be sold to other content providers.

However, the ambitious company’s idea ran into some snags soon after the ICO ended as it became increasingly difficult to encourage content sharing.

The management of the startup “Contents Protocol” said:

Negative perception towards cryptocurrency, price volatility, and a complex user experience were the biggest problems we faced.

In order to overcome these limitations, the team went through many trials and errors, but after serious deliberation, we decided that it was best to put an end to this work and return the remaining funds to the CPT holders

Crypto rarely refunds investors:

After advising with law firms in both Korea and Singapore, the firm decided to do so.

The remaining assets will be distributed to the users.

The company has raised a total of 2,9333.77 ETH through the ICO and has 2,6877.68 ETH available for distribution.

Read:Japan’s central bank asks G7 to speed up regulation of cryptocurrency

Since the current supply of CPT is just under 3.2 billion tokens, investors will get about 0.84 ETH for 100,000 CPT.

Table showing the asset allocation ratio for TCP funds. (Source: “Content Protocol“)

According to the same company announcement:

We will convert our remaining assets into Ethereum and distribute them on a pro rata basis to CPT holders who have requested Ethereum compensation until a specified date.

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

Read:The fear and greed index towards cryptocurrency reaches its lowest level in 5 months

Although Contents Protocol isn’t the first, and won’t be the last to stop after an ICO, the startup has willingly made its decision to refund investors.

So far, the US Securities and Exchange Commission (SEC) has ordered several companies to refund investors after conducting an ICO in an unregulated manner.

Power Pantera Capital Management announced that a quarter of the ICO invested in it may have to return the money to its investors.

Read also:

Scammers Claim To Sell Libra ICO Tokens On Twitter

France approves the country’s first initial coin offering (ICO)