Since the coming and going of the 2017 crypto-currency bull run, crypto-businesses, as well as projects, have found it hard to survive if not completely wiped out.
This phenomenon was again put on display when Content Protocol, a Korean cryptocurrency company announced its closure. The Startup focused essentially on content exchange and the lack of business opportunities and regulatory uncertainty killed any chance of its growth. One of the biggest highlights of the shutdown was that the Contents Protocol decided to refund its assets to the investors.
Contents Protocol will refund its investors, distributing just under 27,000 ETH on a pro-rated basis. These were the total holdings of the company before it decided to announce its shutdown. The startup is barely 2 years old and had made news in December 2018 by raising $10 million in Ethereum during a token sale. The official announcement from Content Protocl stated:
“We inform you that due to continued regulatory uncertainties in cryptocurrency and lack of business prospect, we have decided to end our project. Based on the legal opinion and advisory from law firms in Korea and Singapore, we will convert our remaining assets to ETH and distribute it on a pro rata basis to CPT holders who have requested ETH compensation until specified date.”
Contents Project was made to collect consumer data from Korean platforms such as WATCHA PLAY and WATCHA to create a better content ecosystem. In this way, the company plans to rewards the users for its data with its native token Contents Protocol token [CPT].
The US SEC has been involved in the case of multiple cryptocurrency companies. Earlier in 2018, Pantera Capital estimated a quarter of the ICOs it invested in could be sent back to their original backers.