Contents Protocol will liquidate and refund, making a profit compared to the ICO price.

A South Korean cryptocurrency startup, Contents Protocol, announced the termination of its project and will be entering liquidation. The company has promised to convert the remaining assets into ETH and distribute them proportionally to the holders of the project token CPT.

Raised $3.4 Million in 2018

According to an official announcement from Contents Protocol, the team had to make the decision to terminate the project due to a lack of business prospects and ongoing regulatory uncertainties in the cryptocurrency industry. Contents Protocol was an ICO project in 2018 that collected user data from South Korean movie and TV recommendation platform WATCHA and online video streaming platform WATCHA PLAY, rewarding the platform and its users with CPT, then processing and analyzing the collected data to sell to content providers, creating a better content production ecosystem.

Data from ICObench shows that Contents Protocol raised approximately $3.4 million worth of Ether (valued at around $115 at the time) through an ICO in December 2018, with the current market price of Ether at around $280.

Financial Settlement and Token Buyback

The ideal of Contents Protocol was to conditionally collect user data for content platforms by giving feedback to users and utilizing the collected data to create a better content production ecosystem. However, it seems that this was not so easy to achieve. The Contents Protocol team stated:

"Encouraging users to participate in this area presents many difficulties due to the negative perception of cryptocurrency by users, as well as factors such as price volatility and complex user experiences. Introducing content platforms willing to provide data for Contents Protocol is also a challenge. Due to limited data collection capabilities, it is difficult to provide useful insights to help content creators."

Additionally, regulatory uncertainty and accounting risks were also cited as reasons.

Contents Protocol is now liquidating remaining assets and distributing them to investors. The company has about 26,878 ETH ($7.52 million) remaining after deducting expenses, which will be distributed to CPT holders in the following proportions:

Comparing the amount of Ether received to the ICO price (ICO price: 0.00001600 ETH), investors still have over 30% profit in terms of USD value (ICO price: 0.00176 USD).

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