South Korean ICO Shuts Down, Holders Will Get Their Funds Back

The South Korean ICO project Contents Protocol, shut down today and now the users will get the 26,877 ETH returned. There were many legal obstacles but also business challenges as well which were considered the reason for the shut down so let’s find out more in the crypto news today.

The details can be seen on the modified homepage of the project. The public ICO ended in December 2018 and collected about 7,000 ETH which was the funding goal but the remaining 22,000 ETH came from the private token sales. The project was combined with a content platform that was developed by Watcha and the goal was to reward the platform users with the CPT Token once they interact with the platform and giving up their data. The platform failed to do so.

The team was motivated with ‘’negative perception towards cryptocurrency’’ and said that the high volatility and complex user experience were the problems for the failed mission. They also struggled to find other content platforms. Finally, the team said there were ‘’uncertain legal and accounting risks’’ as another part of the reasons for the shutdown which required ‘’serious deliberation.’’

The team revealed that they spent about $1.5 million during operation time and most of the gathered money was going into legal and agency fees. More than 1,500 ETH was categorized as agency fees as well and a commission for conducting the ICO. The team of the South Korean ICO project was left with 27,000 ETH and 2,000 of which came from the ETH/Bitcoin trades. The company later sold 20,000 ETH for 500 BTC and was able to purchase more than 22,000 ETH for 490 BTC.

The project will return the funds to all of the CPT token holders based on the 0.84 ETH for 100,000 CPT ratio which was calculated by measuring the circulating supply of the tokens. It is also worth knowing that this is not an investor refund. The supply calculations include all circulating tokens and some of them were allocated to the team, advisors and other members of the community.

The portion of the team was reportedly sold to the market and the advisors’ portion is much less which still could be partially owned by the original holders. Contents Protocol didn’t reply to the requests for comment.