An $Eight million ICO undertaking is shutting down, citing regulatory uncertainty and difficulties in onboarding new customers.
Content material-sharing platform Contents Protocol introduced Wednesday that following quite a few makes an attempt to show its enterprise into successful, the agency is closing down and refunding buyers as a lot as $7.5 million-worth of the ether (ETH) raised in its preliminary coin providing (ICO).
“We inform you that resulting from continued regulatory uncertainties in cryptocurrency and lack of enterprise prospects, now we have determined to finish our undertaking,” reads an announcement that has changed Contents Protocol’s web site.
Contents Protocol was a relative latecomer to the ICO increase, solely finishing its crowd sale in December 2018. It was created as a subsidiary of WATCHA Play, a well-liked Korean streaming service, and was designed to incentivize content material sharing by successfully rewarding customers who rated and reviewed movies and TV featured on the platform with its native CPT token.
“The principle factor that the blockchain permits us to do is … compensate a brand new participant [users] who actually present free advertising and marketing for the content material,” stated John Kim, Contents Protocol’s international enterprise developer, in an interview with Ran NeuNer for CNBC, again in Might 2018.
The undertaking aimed to turn out to be worthwhile by processing and analyzing sharing knowledge, which may subsequently be offered again to content material suppliers to tell them on which films and TV sequence ought to be featured on their platforms.
However in Wednesday’s announcement, Contents Protocol complained that few shoppers needed to make use of the platform as a result of of the “destructive notion towards cryptocurrency, value volatility and complicated person expertise.”
The corporate stated anti-crypto attitudes had been unlikely to enhance within the quick time period, and would impression how digital belongings can be regulated sooner or later. With no sturdy person base, it additionally made it tough to encourage different content material suppliers to supply knowledge for the platform, limiting any doable insights that may very well be subsequently offered again to platforms.
Contents Protocol raised 29,333 ETH ($8.1 million) in its non-public and public ICOs in 2018. All remaining belongings, value roughly $7.5 million, have now been transformed again into ether and will likely be distributed to buyers who’ve requested refunds.
CPT token holders can even have the ability to change them at a charge of one token for $0.002 value of ether. All CPT collected will likely be destroyed when the corporate enters the liquidation course of, the corporate stated.
Based on Contents Protocol’s asset data, round 3,800 ETH was exchanged into $1.45 million to fund enterprise operations. Though some of the funds had been transformed into bitcoin (BTC), the overwhelming majority of belongings remained in ether all through the corporate’s lifetime.
An organization spokesperson didn’t reply to requests for remark by press time.
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