Korean ICO Contents Protocol Shuts Down, Will Return $7.5M to Holders

The South Korean initial coin offering project Contents Protocol will return 26,877 Ether to holders of its CPT token.

Its public ICO ended in December 2018 and collected almost 7,000 ETH, which was its funding goal.

The remaining 22,000 ETH came from private token sales.

The team motivated it with "Negative perception toward cryptocurrency," citing high volatility and a complex user experience.

Finally, the team mentioned "Uncertain legal and accounting risks" as another reason for the shutdown decision, which required "Serious deliberation."

Another 1,500 ETH is also categorized as agency fees, likely a commission for conducting the ICO. The team is left with almost 27,000 ETH, about 2,000 of which came from a successful ETH/Bitcoin trade.

The company initially sold 20,000 ETH for 500 BTC, and was able to buy more than 22,000 ETH for 490 BTC.Contents Protocol balance sheet.

The project will return the funds to each CPT token holder based on a ratio of 0.84 ETH for 100,000 CPT. The figure was calculated by measuring the circulating supply of CPT. It is worth noting that this is not a strict investor refund.

The supply calculations include all circulating tokens, some of which were initially allocated to advisors, the team and various community and bounty programs.

Contents Protocol did not immediately reply to a request for comment.