Startup That Raised Millions of Dollars in ICO, Announced the Closure

The South Korean crypto start-up Contents Protocol, which raised 29,333 ETH (about $8.2 million at current price) in ICO and private token sale, closes and returns funds to investors.

Contents Protocol said it made this decision due to the lack of prospects for its business and the continuing uncertainty in the cryptocurrency industry.

The project collected data on users of the South Korean content platforms Watcha and Watcha Play in exchange for CPT tokens. Watcha is a movie rating and recommendation app, and Watcha Play is a South Korean streaming service (similar to Netflix).

The project planned to sell the collected data to content producers, but this idea didn't work.

“In order to overcome these limitations, the team went through numerous trials and errors, but after serious deliberation, we decided that it would be best to put a stop to this business and return our remaining assets to CPT holders,” the startup wrote on website.

Currently, the startup distributes the remaining assets among investors — the company has about 26,878 ETH ($7.52 million) left.

The ICO of the project was held from December 17 to December 20, 2018. At that time, ETH cost about $115, which means that the total cost of funds raised at the time of the ICO was about $3.40 million.

Author: Marko Vidrih

Featured image credit: Pixabay