The South Korean preliminary coin providing undertaking Contents Protocol will return 26,877 Ether (ETH) ($7.5 million at press time) to holders o
The South Korean preliminary coin providing undertaking Contents Protocol will return 26,877 Ether (ETH) ($7.5 million at press time) to holders of its CPT token. Each authorized obstacles and enterprise challenges have been cited as causes for the shutdown.
The small print are seen on the undertaking’s modified homepage, first recorded on Feb. 19. Its public ICO ended in December 2018 and picked up nearly 7,000 ETH, which was its funding aim. The remaining 22,000 ETH got here from personal token gross sales.
The undertaking was mixed with a content material platform developed by Watcha, the corporate behind the token. The thought was to reward platform customers with the CPT token for interacting with the platform and giving up their information.
Nevertheless, the platform didn’t raise off. The crew motivated it with “destructive notion towards cryptocurrency,” citing excessive volatility and a posh person expertise. Discovering different content material platforms was additionally a problem.
Lastly, the crew talked about “unsure authorized and accounting dangers” as another excuse for the shutdown determination, which required “critical deliberation.”
How the funds might be returned
The crew revealed that it spent about $1.5 million in its 12 months of operation, with most of it going into authorized, and company charges. One other 1,500 ETH can also be categorized as company charges, doubtless a fee for conducting the ICO.
The crew is left with nearly 27,000 ETH, about 2,000 of which got here from a profitable ETH/Bitcoin (BTC) commerce. The corporate initially bought 20,000 ETH for 500 BTC, and was in a position to purchase greater than 22,000 ETH for 490 BTC.
Contents Protocol stability sheet. Supply: contentsprotocol.io
The undertaking will return the funds to every CPT token holder primarily based on a ratio of 0.84 ETH for 100,000 CPT. The determine was calculated by measuring the circulating provide of CPT.
It’s value noting that this isn’t a strict investor refund. The provision calculations embody all circulating tokens, a few of which have been initially allotted to advisors, the crew and numerous group and bounty applications.
The crew’s portion is simply a small a part of the entire, and is reported to have been fully bought to the market. The advisor portion is much less clear in that regard, and should be partially owned by the unique holders. The precise redemption process has but to be revealed.
Contents Protocol didn’t instantly reply to a request for remark. The article might be up to date as extra info comes via.